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CIMAPRA19-F01-1 Exam - Topic 2 Question 9 Discussion

UV's financial statements for the year ended 31 March 20X8 were approved for publication on 30 June 20X8.In accordance with IAS 10 Events After the Reporting Period, which of the following material events would have been classified as a non-adjusting event in these financial statements?
D) On 28 April 20X8 a fire destroyed half of UV's main production facility. Output was severely reduced for six months.
A) On 1 June 20X8 UV's auditors discovered that an error in valuation had caused the closing inventory to be overvalued by $150,000.
B) On 10 April 20X8 UV received a communication stating that one of its customers had ceased trading and gone into liquidation. The balance outstanding at 31 March 20X8 was unlikely to be paid.
C) On 1 June 20X8 UV was awarded damages of $70,000 in respect of a legal claim that it had made against the local government authority in October 20X7.

CIMAPRA19-F01-1 Exam - Topic 2 Question 9 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 9
Topic #: 2
[All CIMAPRA19-F01-1 Questions]

UV's financial statements for the year ended 31 March 20X8 were approved for publication on 30 June 20X8.

In accordance with IAS 10 Events After the Reporting Period, which of the following material events would have been classified as a non-adjusting event in these financial statements?

Show Suggested Answer Hide Answer
Suggested Answer: D

by Yolando at May 07, 2022, 10:44 PM

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Glory
9 months ago
C is tricky, but I think it's non-adjusting too.
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Edison
9 months ago
Surprised that the fire (D) isn't considered adjusting!
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Broderick
9 months ago
Wait, isn't A also a non-adjusting event?
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Willow
9 months ago
I agree, B makes sense.
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Kimberely
10 months ago
Option B is definitely a non-adjusting event.
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Wenona
10 months ago
Okay, let's see. The question is asking about the number of bits in a CQI value, so I'll need to remember what CQI stands for and how it's typically represented.
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Nan
10 months ago
Hmm, the image shows some tables, but I'm not sure how to identify circular references or synthetic keys just from that. I'll need to think this through step-by-step.
upvoted 0 times
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