Discuss CIMA CIMAPRA19-F01-1 Exam Topic 6 Question 46

The financial statements of JK for the year ended 31 August 20X4 were approved on 10 November 20X4.

Within these financial statements which of the following would have been treated as a non-adjusting event in accordance with IAS 10 Events After the Reporting Period?

AInventory which was originally valued at its cost of $45,000 being sold for $37,000 in September 20X4.

BA fire in JK's main warehouse on 3 September 20X4 destroying 60% of the inventory that had been held at the year end.

CNotification received on 31 August that one of JK's major customers had gone into liquidation and was unlikely to pay any outstanding invoices.

DThe completion of a court case on 5 November 20X4 in which JK was ordered to pay damages of $150,000.

Suggested Answer: B

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9 comments · newest first

Freeman 12 months ago

Inventory sold for less than cost is just a regular loss, not adjusting.

Goldie 1 year ago

Wait, how is the fire not an adjusting event? That seems off.

Asuncion 1 year ago

The court case outcome is a non-adjusting event for sure!

Leana 1 year ago

I think the liquidation notice counts too, but I'm not sure.

Vivienne 1 year ago

A fire destroying 60% of inventory is definitely a non-adjusting event.

Wilson 1 year ago

Enabling BGP could be the answer, but I want to double-check that against the requirements. I'll make sure I fully understand the problem before selecting my final answer.

Irma 1 year ago

The FIND statement in options A and B seems like the way to go here. I'm leaning towards A since it's a simpler data structure to work with. But I'll need to be careful to ensure I understand how the FIND statement behaves compared to a traditional WHERE clause.

Blair 1 year ago

Hmm, I'm a bit unsure about this one. I know price elasticity has to do with how responsive demand is to changes in price, but I'm not totally clear on the specifics of what makes a good price inelastic.

Tammi 1 year ago

Okay, let's see. The question says the authentication logs didn't reveal the issue, and the vCenter agent logs showed no connectivity errors. I'm guessing the next step would be to check the system logs for any relevant error messages.

CIMAPRA19-F01-1 Exam - Topic 6 Question 46 Discussion