Events after the reporting date are of two types:
Type 1 $\quad $ Those that provide new evidence about conditions that existed at the reportingdate
Type 2 $\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 
Type 2 $\quad $ Those that relate to new conditions arising after the reportingdate
Which of the following statements is correct?

Quizplus · Accepted Answer

Both type 1 and type 2 events will affect the contents of the full annual report of the previous period. Type 1 events provide additional information about conditions that existed at the end of the reporting date, while type 2 events provide information about conditions that arose after the reporting date but before the financial statements were issued. Both types of events can have a material impact on the financial statements of the previous period and need to be disclosed in the notes to the financial statements.

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

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