A company's workforce went on strike for an indefinite period commencing on 28 July 2022. The strike was expected to cause severe financial conditions for the company. The financial statements for the year ended 30 June 2022 were expected to be finalised by 3 August 2022. In accordance with AASB 110 Events after the Reporting Period, the appropriate treatment regarding this event is to:
A) adjust the financial statements, as it is an adjusting event.
B) disclose as a note to the financial statements, as it is an adjusting event.
C) disclose as a note to the financial statements, as it is a non-adjusting event.
D) do nothing as the event has occurred after the end of the reporting period.
Correct Answer:
Verified
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