AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment.The two criteria are:
A) (a) provides an indication that conditions may have existed at reporting date; or (b) reveals additional solid evidence of a condition that existed at reporting date.
B) (a) provides additional evidence of conditions that existed at the date the audit report was signed; or (b) reveals for the first time a condition that existed at date of completion.
C) (a) provides an indication that conditions may have existed at date of completion; or (b) reveals additional solid evidence of a condition that existed at date of completion.
D) (a) provides additional evidence of conditions that existed at reporting date; or (b) reveals for the first time a condition that existed at reporting date.

Question

Quizplus · Accepted Answer

AASB 110 specifies that the two criteria for determining the treatment of adjusting events are that they (a) provide additional evidence of conditions that existed at reporting date, or (b) reveal for the first time a condition that existed at reporting date. Therefore, choice D, which accurately reflects these two criteria, is the correct answer. Choices A, B, and C all contain inaccurate statements about the criteria for adjusting events.

AASB 110 Specifies That Adjusting Events Should Be Considered Against