In the case of a non-adjusting event,AASB 110 requires it to be:
A) reflected in the financial information in the statements if it is material and relates to an item that would normally be reflected in the financial statements.
B) disclosed by way of note if it is material.
C) disclosed as a contingent liability, if an unfavourable material event.
D) reflected in the financial statements, if an unfavourable material event; disclosed by way of note, if a favourable event.

Question

Quizplus · Accepted Answer

A non-adjusting event is an event that does not provide evidence of conditions existing at the end of the reporting period. AASB 110 requires that non-adjusting events be disclosed by way of note if they are material. Non-adjusting events are not included in the financial statements because they are not evidence of conditions existing at the end of the reporting period.

In the Case of a Non-Adjusting Event,AASB 110 Requires It