Birong Ltd.issued $200 million preference share issue after reporting date.What is the classification of this subsequent event and what is the accounting treatment prescribed in AASB 110?
A) adjusting event; no disclosure necessary.
B) adjusting event; with appropriate disclosure.
C) non-adjusting event; no disclosure necessary.
D) non-adjusting event; with appropriate disclosure.
E) None of the given answers

Question

Quizplus · Accepted Answer

The subsequent event of issuing a preference share issue after the reporting date is a non-adjusting event as it does not relate to conditions that existed at the reporting date. However, disclosure is necessary to provide users with information about the event. Therefore, the correct choice is D) non-adjusting event; with appropriate disclosure.