Events after the reporting date are of two types:
Type 1 $\quad $Those that provide new evidence about conditions that existed at the reportingdate
Type2 $\quad $Those that relate to new conditions arising after the reportingdate

Which of the following statements is correct?

Question

Events after the reporting date are of two types:
Type 1  $\quad $Those that provide new evidence about conditions that existed at the reportingdate 
Type2 $\quad $Those that relate to new conditions arising after the reportingdate

Which of the following statements is correct?

Quizplus · Accepted Answer

Type 1 events provide evidence about conditions that existed at the reporting date and therefore may require adjustments to the financial statements of the previous period. Type 2 events, which occur after the reporting date, do not affect the figures of the previous period as they relate to new conditions.

Events After the Reporting Date Are of Two Types: Type \quad

Events After the Reporting Date Are of Two Types:
Type $\quad$