- 3 Marks
PSA – Nov 2024 – L2 – Q4c – Events After the Reporting Date
Explanation of events occurring after the reporting date and their impact on financial statements.
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CR – May 2021 – L3 – Q5c – Events After the Reporting Period (IAS 10)
Advise on the accounting treatment and disclosure for a court ruling after the reporting period.
Question
According to IAS 10 on Events After the Reporting Period, events after the reporting period are those events, favorable or unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue.
On December 31, 2014, Shawarma Limited was involved in a court case. The company is being sued by one of its major suppliers. On March 15, 2019, the court decided that Shawarma Limited should pay the supplier the sum of N90 million in settlement of the dispute.
The financial statements of Shawarma Limited for the year ended December 31, 2018, were authorized for issue on April 18, 2019.
Required:
Prepare a brief note advising on the accounting treatments and disclosure required as a result of the event(s) after the reporting date. (6 Marks)
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- 3 Marks
PSA – Nov 2024 – L2 – Q4c – Events After the Reporting Date
Explanation of events occurring after the reporting date and their impact on financial statements.
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Report an error
- 6 Marks
CR – May 2021 – L3 – Q5c – Events After the Reporting Period (IAS 10)
Advise on the accounting treatment and disclosure for a court ruling after the reporting period.
Question
According to IAS 10 on Events After the Reporting Period, events after the reporting period are those events, favorable or unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue.
On December 31, 2014, Shawarma Limited was involved in a court case. The company is being sued by one of its major suppliers. On March 15, 2019, the court decided that Shawarma Limited should pay the supplier the sum of N90 million in settlement of the dispute.
The financial statements of Shawarma Limited for the year ended December 31, 2018, were authorized for issue on April 18, 2019.
Required:
Prepare a brief note advising on the accounting treatments and disclosure required as a result of the event(s) after the reporting date. (6 Marks)
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