題目

The financial statements of Overexposure Co for the year ended 31 December 20X1 are to be approved

on 31 March 20X2. Before they are approved, the following events take place.

1?On 14 February 20X2 the directors took the strategic decision to sell their investment in Quebec Co despite the fact that this investment generated material revenues.

2?On 15 March 20X2, a fire occurred in the eastern branch factory which destroyed a material amount of inventory. It is

estimated that it will cost $505,000 to repair the significant damage done to the factory.

3?On 17 March 20X2, a customer of Overexposure Co went into liquidation. Overexposure has been advised that it is unlikely

to receive payment for any of the outstanding balances owed by the customer at the year end.

How should these events reflected in the financial statements at 31 December 20X1?

Adjust????????????????????? ?Disclose?????????????????????????? Do nothing

A

?3??????????????????????????? ??? 2, 3????????????????????????????????????? ?1

B

2, 3???????????????????????????????1??????????????????????????????????????????-

C

3??????????????????????????????? 1, 2??????????????????????????????????????? ?-

D

?2???????????????????????????????? 3, 1?

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Chapter21Eventsafterthereportingperiod

IAS 10 requires the financial statements to be adjusted for events that reflect conditions that

existed at the reporting date. Only event 3 is indicative of conditions at the reporting date - ie the recoverability of the

receivable balance. Events 1 and 2 are non-adjusting events, however, they are material so they should be disclosed.

多做幾道

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

?The accruals concept

C

The going concern concept

D

?The business entity concept

Which accounting concept should be considered if the owner of a business takes goods from inventory for his own personal

use?

A

The fair presentation concept

B

The accruals concept

C

?The going concern concept

D

The business entity concept

According to the IASB's Conceptual Framework for Financial Reporting, which TWO of the following are part of faithful

representation?1 It is neutral2 It is relevant3 It is presented fairly4 It is free from material error

A

1?and?2

B

2?and?3

C

?1?and?4

D

3?and4

Which of the following accounting concepts means that similar items should receive a similar accounting treatment?

A

Going concern

B

Accruals

C

Matching

D

Consistency

Listed below are some characteristics of financial information.1 Relevance2 Consistency3 Faithful representation4 Accuracy

Which of these are qualitative characteristics of financial information according to the IASB's Conceptual Framework for

Financial Reporting?

A

1 and 2 only

B

2 and 4 only

C

3 and 4 only

D

1 and 3 only

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