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A Company's Workforce Went on Strike for an Indefinite Period

Question 9

Multiple Choice

A company's workforce went on strike for an indefinite period commencing on 5 August 20X1.The strike was expected to cause severe financial conditions for the company.The financial statements for the year ended 30 June 20X1 were expected to be completed by 7 August 20X1.In accordance with AASB 110 Events after the Reporting Date,the appropriate treatment regarding the strike is:


A) disclosure as a note to the financial statements,as it is a non-adjusting event;
B) disclosure as a note to the financial statements,as it is an adjusting event;
C) to adjust the financial statements,as it is a non-adjusting event;
D) to adjust the financial statements,as it is an adjusting event.

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