Module 2 - Part A

<p>How to treat events and transactions that occur from the end of the reporting period to the date that the financial report is signed off. (D)</p> Signup and view all the answers

<p>Their operations according to segments (C)</p> Signup and view all the answers

<p>To provide information useful for making economic decisions and demonstrating management's stewardship. (C)</p> Signup and view all the answers

<p>A director's report outlining future strategies and risks (C)</p> Signup and view all the answers

<p>When an accounting policy is applied retrospectively, items are retrospectively restated, or items are reclassified. (C)</p> Signup and view all the answers

<p>Give equal prominence to all of the financial statements in a complete set. (A)</p> Signup and view all the answers

<p>General purpose financial statements cater to a wide range of users, while special purpose financial statements address specific information needs. (B)</p> Signup and view all the answers

<p>Australian Accounting Standards, specifically AASB 101, AASB 107, AASB 108, AASB 1048, and AASB 1054. (B)</p> Signup and view all the answers

<p>It mandates the application of all recognition and measurement requirements in Australian Accounting Standards. (B)</p> Signup and view all the answers

<p>Explanations and elaborations of items presented in the main financial statements. (D)</p> Signup and view all the answers

<p>Whether the financial Statements are general or special purpose financial statements. (A)</p> Signup and view all the answers

<p>IAS 8 paragraphs 32-40. (C)</p> Signup and view all the answers

<p>IAS 10 paragraphs 8-9. (C)</p> Signup and view all the answers

<p>Paragraphs 38-38D (B)</p> Signup and view all the answers

<p>Paragraphs 10-14 (A)</p> Signup and view all the answers

<p>Paragraphs 28-31. (C)</p> Signup and view all the answers

<p>Paragraphs 10-11 (B)</p> Signup and view all the answers

<p>If its omission or misstatement could reasonably be expected to influence the economic decisions of primary users of financial statements. (B)</p> Signup and view all the answers

<p>An entity must present separately each material class of similar items and present separately items of a dissimilar nature or function unless they are immaterial. (D)</p> Signup and view all the answers

<p>Aggregating dissimilar items, transactions, or other events inappropriately. (A)</p> Signup and view all the answers

<p>When allowed or required by an IFRS. (C)</p> Signup and view all the answers

<p>Offsetting current tax assets and liabilities when the entity has a legally enforceable right to set off the recognized amounts and intends to settle on a net basis. (D)</p> Signup and view all the answers

<p>Annually (B)</p> Signup and view all the answers

<p>Disclosure of the change and the reason for the change is required. (A)</p> Signup and view all the answers

<p>To enhance inter-period comparability and assess trends in financial information for predictive purposes. (B)</p> Signup and view all the answers

<p>Two (B)</p> Signup and view all the answers

<p>If the entity applies an accounting policy retrospectively, makes a retrospective restatement of items in its financial statements or reclassifies items in its financial statements and the retrospective application, retrospective restatement or the reclassification has a material effect on the information in the statement of financial position at the beginning. (A)</p> Signup and view all the answers

<p>Reporting assets net of valuation allowances is not considered offsetting and is permissible. (A)</p> Signup and view all the answers

<p>It ensures comparability year-on-year for the number of retail days during which they conducted their business. (C)</p> Signup and view all the answers

<p>Comparative information for narrative and descriptive information is required if it is relevant to understanding the current period financial statements (B)</p> Signup and view all the answers

<p>Except if such gains and losses are separately material (C)</p> Signup and view all the answers

<p>Separately presenting small value expenses relating to stationary, postage, and printing (C)</p> Signup and view all the answers

<p>Apply the change retrospectively, restating prior periods. (B)</p> Signup and view all the answers

<p>Apply the new accounting policy prospectively from the earliest date practicable, adjusting affected components of equity. (B)</p> Signup and view all the answers

<p>The nature of the change, reasons for it, and the amount of adjustment for each financial statement item affected. (A)</p> Signup and view all the answers

<p>The data required to apply the new policy is no longer available. (D)</p> Signup and view all the answers

<p>A decrease in the cost of goods sold. (A)</p> Signup and view all the answers

<p>Retained earnings are increased. (C)</p> Signup and view all the answers

<p>Debit Inventory, credit Retained Earnings. (B)</p> Signup and view all the answers

<p>The amount of adjustment for each financial statement item affected for the current and each prior period presented. (D)</p> Signup and view all the answers

<p>Profit before tax increases. (D)</p> Signup and view all the answers

<p>The change must result in financial statements that provide reliable and more relevant information. (C)</p> Signup and view all the answers

<p>No disclosure is required until the standard becomes effective. (B)</p> Signup and view all the answers

<p>The nature of the change, the reasons it provides more reliable information, and the amount of adjustment for each financial statement item affected. (D)</p> Signup and view all the answers

<p>Debit Inventories; credit Closing Inventories in Profit and Loss (D)</p> Signup and view all the answers

<p>An effect of $26,000 (A)</p> Signup and view all the answers

<p>Because it more accurately reflects the economic substance and results in more relevant and reliable information (C)</p> Signup and view all the answers

<p>The situation and the potential impact of applying the new standard or interpretation. (D)</p> Signup and view all the answers

<p>Companies have the option of early adopting accounting standards. (B)</p> Signup and view all the answers

<p>Revenue recognised from a sale. (C)</p> Signup and view all the answers

<p>Prospectively, including it in the profit or loss in the period of the change and future periods if the change affects both. (A)</p> Signup and view all the answers

<p>As a change in an accounting estimate, adjusting prospectively in the current period. (A)</p> Signup and view all the answers

<p>Adjustments should be made in the reporting period of the change of estimate, where relevant. (D)</p> Signup and view all the answers

<p>The nature and amount of the revision must be made where the change affects the current reporting period (B)</p> Signup and view all the answers

<p>IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors) (B)</p> Signup and view all the answers

<p>Adjusting the useful life of an asset due to new information. (D)</p> Signup and view all the answers

<p>Disclose the fact that it is impracticable to estimate the effect. (C)</p> Signup and view all the answers

<p>A change in accounting policy is applied retrospectively, while a change in accounting estimate is applied prospectively. (A)</p> Signup and view all the answers

<p>Restate prior periods' financial results. (C)</p> Signup and view all the answers

<p>Restate the prior period's financial statements to correct for the error. (D)</p> Signup and view all the answers

<p>Whether the situation arose from new information or a previous error or omission. (A)</p> Signup and view all the answers

<p>The effect is recognized both in the period of change and prospectively in future periods. (C)</p> Signup and view all the answers

<p>It contains condensed financial statements. (A)</p> Signup and view all the answers

<p>The same basis as internal decision making. (B)</p> Signup and view all the answers

<p>Revenues from external customers only. (C)</p> Signup and view all the answers

<p>It provides minimum requirements for interim financial reports. (B)</p> Signup and view all the answers

<p>Key features of financial performance and position. (C)</p> Signup and view all the answers

<p>It issues 'enhanced disclosure' securities. (A)</p> Signup and view all the answers

<p>To assist investors and creditors in understanding financial conditions. (C)</p> Signup and view all the answers

<p>To assist users in breaking down financial data for clarity. (D)</p> Signup and view all the answers

<p>Material non-cash items other than depreciation and amortization. (B)</p> Signup and view all the answers

<p>They can include environmental reports. (D)</p> Signup and view all the answers

<p>If its results are reviewed by the chief operating decision maker. (D)</p> Signup and view all the answers

<p>To disclose compliance with IFRS requirements. (D)</p> Signup and view all the answers

<p>Condensed financial statements. (D)</p> Signup and view all the answers

<p>Present comprehensive accounts of business influences. (A)</p> Signup and view all the answers

<p>Faithful representation of transactions (B)</p> Signup and view all the answers

<p>If compliance would mislead and conflict with financial statement objectives (B)</p> Signup and view all the answers

<p>The title of the IFRS and nature of the departure (C)</p> Signup and view all the answers

<p>The entity will continue as a going concern (B)</p> Signup and view all the answers

<p>Recognizing items when they meet criteria regardless of cash transfer (A)</p> Signup and view all the answers

<p>Cash revenue recognition (D)</p> Signup and view all the answers

<p>The rationale for not being a going concern (B)</p> Signup and view all the answers

<p>The entity operates on a going concern basis (C)</p> Signup and view all the answers

<p>Providing relevant and faithfully represented financial information (D)</p> Signup and view all the answers

<p>Details of the uncertainty must be disclosed (C)</p> Signup and view all the answers

<p>To provide transparency and accuracy (D)</p> Signup and view all the answers

<p>Management assesses this based on future information (D)</p> Signup and view all the answers

<p>Accrual accounting (D)</p> Signup and view all the answers

<p>Provide comparative information (B)</p> Signup and view all the answers

<p>Significant accounting policies to assist users in decision making. (D)</p> Signup and view all the answers

<p>Adjusting events provide new evidence of conditions existing at the reporting period, while non-adjusting are new conditions that arise after. (D)</p> Signup and view all the answers

<p>Errors relate to prior periods while changes in estimates do not. (C)</p> Signup and view all the answers

<p>Dividends declared after the reporting period. (D)</p> Signup and view all the answers

<p>Subjectivity in asset valuation. (D)</p> Signup and view all the answers

<p>A statement of cash flows and notes to the financial statements. (A)</p> Signup and view all the answers

<p>International Financial Reporting Standards (IFRSs). (D)</p> Signup and view all the answers

<p>Faithful representation according to the definitions in the Conceptual Framework. (D)</p> Signup and view all the answers

<p>The reasons why reclassification is impracticable and the nature of the adjustments that would have been made. (A)</p> Signup and view all the answers

<p>Errors that were material in a prior period. (C)</p> Signup and view all the answers

<p>Only when a significant change occurs in the entity's operations or required by an IFRS. (D)</p> Signup and view all the answers

<p>Financial statements and a summary of significant accounting policies with explanatory notes. (D)</p> Signup and view all the answers

<p>Provide disaggregated financial information in the notes. (B)</p> Signup and view all the answers

<p>Using a hierarchy that ensures compliance with IFRSs and related guidance. (B)</p> Signup and view all the answers

<p>The financial statements must be neutral, free from bias. (C)</p> Signup and view all the answers

<p>By utilizing professional judgment while ensuring relevance and reliability. (C)</p> Signup and view all the answers

<p>The complete disposal of a major line of its businesses. (B)</p> Signup and view all the answers

<p>How to account for non-current assets. (B)</p> Signup and view all the answers

<p>They provide insight for users to compare financial results across time and entities. (C)</p> Signup and view all the answers

<p>Information that is accurate and represents the underlying economic substance of transactions. (C)</p> Signup and view all the answers

<p>After a significant operational change in the entity. (B)</p> Signup and view all the answers

<p>To make allowances for differences in financial results due to varying accounting policies. (C)</p> Signup and view all the answers

<p>It must solely reflect historical data. (C)</p> Signup and view all the answers

<p>They must be corrected retrospectively in the first financial statement issued after discovery. (C)</p> Signup and view all the answers

<p>When data are no longer available or cannot be collected. (A)</p> Signup and view all the answers

<p>To prescribe when to adjust financial statements for events after the reporting period (C)</p> Signup and view all the answers

<p>Adjustments made to the opening balance of retained earnings. (B)</p> Signup and view all the answers

<p>The nature of the error and the amount of correction for each line item affected. (A)</p> Signup and view all the answers

<p>Adjusting events providing new evidence of existing conditions (C)</p> Signup and view all the answers

<p>When an event occurs after the financial statements are authorized for issue (C)</p> Signup and view all the answers

<p>Mathematical mistakes in calculations. (D)</p> Signup and view all the answers

<p>It is classified as an adjusting event if it provides evidence of conditions at the end of the period (A)</p> Signup and view all the answers

<p>The adjustment is made at the beginning of the current financial reporting period. (D)</p> Signup and view all the answers

<p>Dr Fair value movements in listed equities $5,000, Cr Investment in shares $5,000. (D)</p> Signup and view all the answers

<p>They must be disclosed as notes to the financial statements (A)</p> Signup and view all the answers

<p>The current period, previous period, and beginning of the earliest comparative period. (D)</p> Signup and view all the answers

<p>Settled court case from a lawsuit that was ongoing (D)</p> Signup and view all the answers

<p>Routine operational errors. (D)</p> Signup and view all the answers

<p>It must be disclosed along with details of who authorized it (C)</p> Signup and view all the answers

<p>Restate the comparative amounts for the prior periods. (C)</p> Signup and view all the answers

<p>It should update disclosures in the notes of the financial statements (D)</p> Signup and view all the answers

<p>If the event could have impacted the financial statements at the reporting date (C)</p> Signup and view all the answers

<p>$95,000. (A)</p> Signup and view all the answers

<p>Through the opening balance of retained earnings. (D)</p> Signup and view all the answers

<p>Settlement of a lawsuit informing on a present obligation (A)</p> Signup and view all the answers

<p>A loss on an investment that became apparent after the reporting period (D)</p> Signup and view all the answers

<p>As a material error. (A)</p> Signup and view all the answers

<p>To disclose the nature and amount of the correction. (C)</p> Signup and view all the answers

<p>Make journal entries to reflect the event in financial reporting (B)</p> Signup and view all the answers

<p>The event must provide new evidence of conditions that existed at the reporting period's end (D)</p> Signup and view all the answers

<p>Non-adjusting events occurring after the reporting period (A)</p> Signup and view all the answers

<p>A company's acquisition of a subsidiary after the end of the reporting period (C)</p> Signup and view all the answers

<p>Disclose in notes but not recognize as a liability (A)</p> Signup and view all the answers

<p>Management's intent to liquidate the entity revealed after the reporting period (A)</p> Signup and view all the answers

<p>Disclose the events in the notes with financial effect estimates (B)</p> Signup and view all the answers

<p>An event that provides additional information about conditions existing at the reporting date (D)</p> Signup and view all the answers

<p>They require immediate adjustment to the financial statements (C)</p> Signup and view all the answers

<p>When management intends to liquidate or cease operations (B)</p> Signup and view all the answers

<p>Change in tax law enacted during the period (C)</p> Signup and view all the answers

<p>They do not require disclosure if they are immaterial (D)</p> Signup and view all the answers

<p>Renegotiation of a loan facility before the financial statements are finalized (B)</p> Signup and view all the answers

<p>The nature of the event and its financial effect estimate (B)</p> Signup and view all the answers

<p>They should be disclosed if material in nature (D)</p> Signup and view all the answers

<p>There is no obligation at the end of the reporting period (B)</p> Signup and view all the answers

<p>They should be consistent for similar transactions unless specified otherwise. (B)</p> Signup and view all the answers

<p>If it is mandated by a newly established IFRS. (A)</p> Signup and view all the answers

<p>Entity-specific information relevant to their circumstances. (A)</p> Signup and view all the answers

<p>It is material if it can influence the decisions of primary users. (C)</p> Signup and view all the answers

<p>Trends in financial position and performance over time. (A)</p> Signup and view all the answers

<p>Apply retrospective adjustments to prior periods. (B)</p> Signup and view all the answers

<p>Applying a new policy to transactions that are previously immaterial. (B)</p> Signup and view all the answers

<p>To significantly affect how profits are reported. (B)</p> Signup and view all the answers

<p>Land valued at fair value, while furniture is at cost basis. (C)</p> Signup and view all the answers

<p>They must reflect the new accounting policy as if it had always been applied. (D)</p> Signup and view all the answers

<p>Disclosure regarding key sources of estimation uncertainty. (C)</p> Signup and view all the answers

<p>Expectations that it will influence primary users' decisions. (D)</p> Signup and view all the answers

<p>They must detail the accounting policies used. (D)</p> Signup and view all the answers

<p>They are not classified as changes in accounting policies. (A)</p> Signup and view all the answers

<p>To aid users in making informed economic decisions. (D)</p> Signup and view all the answers

<p>It should be disclosed as an event after the reporting period. (B)</p> Signup and view all the answers

<p>If a new standard or interpretation requires it. (C)</p> Signup and view all the answers

<p>Events that indicate conditions that existed at the end of the reporting period. (D)</p> Signup and view all the answers

<p>They make the manual assembly of financial reports obsolete. (C)</p> Signup and view all the answers

<p>Adherence to TFRSs to fairly present financial information. (A)</p> Signup and view all the answers

<p>Into adjusting and non-adjusting events based on their nature. (C)</p> Signup and view all the answers

<p>They speed up the report preparation and minimize human error. (C)</p> Signup and view all the answers

<p>Retrospective application is required when there are no transitional provisions. (B)</p> Signup and view all the answers

<p>The reasons for the change and its effects on financial statements. (A)</p> Signup and view all the answers

<p>Three months after the end of the reporting period. (B)</p> Signup and view all the answers

<p>A non-adjusting event that does not affect financial statements directly. (C)</p> Signup and view all the answers

<p>Ensure compliance only with internal company policies. (D)</p> Signup and view all the answers

<p>To improve the timeliness and relevance of data analysis. (D)</p> Signup and view all the answers

<p>Traditional manual processes can delay timely disclosure. (D)</p> Signup and view all the answers

International Accounting Standard 1 outlines the requirements for financial statement presentation.

A comprehensive collection of financial statements as required by IAS 1.

The obligation to present financial statements that reflect the true financial position of an entity.

The assumption that an entity will continue its operations in the foreseeable future.

Transactions and events occurring between the end of the reporting period and the financial report signing.

To provide information about financial position, performance, and cash flows useful for decision-making.

Includes assets, liabilities, equity, income, expenses, cash flows, and owner contributions.

A snapshot of an entity's assets, liabilities, and equity at a specific point in time.

Reports on income and expenses, along with other comprehensive income for a period.

Details changes in equity from transactions with owners and other events over a period.

Reflects inflows and outflows of cash over a period, showing liquidity.

Provides previous period data for comparison in financial statements.

Financial statements aimed at a wide range of users to meet their information needs.

Prepared for specific users with special information needs.

Necessity to apply the same accounting policies across periods unless otherwise stated.

Events that provide additional evidence of conditions existing at the reporting period's end.

Events that arise after the reporting date that do not require adjustments to the financial statements.

SPFS must still follow minimum disclosure standards as per Australian Accounting Standards.

Requirement that financial statements should present an accurate representation of the entity's performance and position.

A financial statement showing net income or loss.

Income that isn't included in profit or loss, like unrealized gains.

Financial reports prepared for a period shorter than a year, often half-yearly.

An entity that must provide enhanced financial disclosures, like listed companies.

Rules that require companies listed on the ASX to prepare half-year reports.

Reports summarizing financial performance for the first half of the year.

To provide minimum requirements for interim reports and reliable information.

An analysis by management on financial performance and position outside formal statements.

Reports detailing a company's impact on the environment, separate from financial statements.

Disclosure of financial information by specific divisions or areas of a business.

A part of the business that generates revenue and has separately reviewed financials.

Distinct sections of a business reported separately to provide clarity.

Reporting income generated from sales or services by each segment.

Decisions made by management regarding how segments are organized for reporting.

The significance of information in influencing decisions of financial statement users.

The process of grouping similar financial transactions for reporting purposes.

Reporting each material class of similar items individually in financial statements.

Items that do not significantly impact the users' decisions and do not require separate reporting.

Information that is hidden or unclear, affecting the understanding of financial statements.

Combining asset and liability balances that may obscure important information.

Certain allowances for offsetting items as specified by IFRS standards.

The allowance for offsetting current tax assets with liabilities when legally enforceable.

The requirement to present complete financial statements at least once a year.

Must present two financial statements: current and prior period.

Adjusting financial statements to correct past errors or reclassifications.

Changing the categorization of items in financial reports to reflect true nature.

The ability of users to comprehend financial reports clearly and effectively.

Descriptive information that enhances understanding of current financial statements.

Documents that present an entity's financial performance and position.

Financial statements must faithfully represent an entity's transactions and conditions.

An entity must explicitly state its compliance with IFRS in financial notes.

An entity may only depart from IFRS if it ensures fair presentation and discloses the reasons.

Management must evaluate if the entity can continue its operations in the foreseeable future.

Financial statements must typically be prepared using accrual accounting principles.

Entities should use the same accounting policies across periods unless a change is justified.

The set of guidelines that underpins the preparation of financial statements.

Entities must disclose specific details if they depart from IFRS.

If continuity of an entity is uncertain, this must be disclosed.

Adjusted amounts in financial statements must match prior periods unless impracticable (IAS 1, para. 41).

Financial statements should remain consistent in presentation from one period to the next (Conceptual Framework, para. 2.26).

Changes in operations may warrant reclassification of financial items (IAS 1, para. 46).

Financial statements must include a summary of significant accounting policies (IAS 1, para. 10).

Disclosure of accounting policies aids users in financial comparison (IAS 1).

Specific principles and practices used to prepare financial statements (IAS 8, para. 5).

Manage selection of accounting policies by a defined hierarchy (IAS 8).

Apply specific IFRS to transactions unless none apply (IAS 8, para. 7).

Refer to IFRS implementation guidance where mandatory (IAS 8, para. 9).

Includes IFRS, IAS, and IFRIC Interpretations (IAS 8, para. 5).

Use judgement to create relevant and reliable accounting information (IAS 8, para. 10).

Financial statements must represent economic substance and be complete (IAS 8, para. 10).

Management should consider IFRS, Conceptual Framework when developing policies (IAS 8, para. 11).

Comparability aids in understanding financial results across periods/entities (Conceptual Framework).

Information that can influence users' decisions in financial statements.

Revealing adopted accounting policies in financial statements' notes.

Applying a new accounting policy to past financial statements for comparability.

Allowed when required by IFRS or improve relevance/reliability of information.

Affect how profits and financial position are reported in statements.

Potential adjustments in assets or liabilities due to estimations made.

Entity-specific policies tailored to its own circumstances.

Management's decisions on applying accounting standards to specific contexts.

A measurement basis allowing assets to be reported based on market value.

A measurement basis where assets are recorded at their acquisition cost.

International Financial Reporting Standards guiding accounting practices worldwide.

Standards for what accounting policy information must be disclosed in financial statements' notes.

Management's choices about how accounting policies are implemented and disclosed.

International Accounting Standard governing inventory valuation methods.

First-In, First-Out; oldest inventory is sold first.

A deliberate revision of how transactions are recorded.

Adjusting previously reported inventory values for accuracy.

The effect of an accounting policy change on accumulated profits.

Records of financial transactions in accounting books.

Profit and Loss Statement combined with Other Comprehensive Income.

The rise in reported inventory due to accounting policy changes.

Financial data of previous periods for comparison purposes.

Situation where retrospective application cannot be performed.

Changes made to the ending inventory balance due to accounting adjustments.

The specific details and reasons why an accounting policy was modified.

Rules governing how to apply new accounting standards.

Significant mistakes in financial statements affecting true representation.

Adjusting financial statements for prior errors discovered later.

Financial figures from prior periods used for comparison.

Revising past financial statements to correct errors.

Adjustment that cannot be made due to missing data.

Description detailing what the identified error was.

Specific details to share when correcting a prior period error.

Assessing asset value based on current market price.

Record of debits and credits to adjust financial statements.

Adjusting starting asset, liability, equity values due to prior errors.

Adjustment account held for errors affecting profit in non-covered periods.

A format to present current and prior financial periods' data side by side.

Illustration of an accounting error from a previous period needing correction.

Standards for correcting errors and changes in accounting policies.

Distinction between significant errors (material) and trivial ones (immaterial).

How to handle changes in accounting policies under IAS 8.

Events providing new evidence of conditions at the reporting period's end.

Events arising after the reporting period that don't require prior adjustments.

Estimations must distinguish changes from error corrections.

Principles disclosed in financial statements to guide users.

Clarifying the accounting practices used in financial statements' notes.

Mandatory presentation of current and prior period data in financial statements.

Requirement that financial statements reflect the true effects of conditions and transactions.

The importance of providing financial info quickly to influence decisions.

Innovations enabling faster and more accurate financial reporting.

Financial statements often take months to prepare, affecting relevance.

A machine-readable format for digital financial reporting.

The assumption that an entity will continue operations in the foreseeable future.

Adjusting financial statements to reflect changes in accounting policies for past periods.

The significance of information that could influence decisions.

Recording revenues and expenses when they are earned or incurred, not when cash is exchanged.

Conditions that may raise doubt about an entity's ability to continue operations.

Need to present prior period data for comparison in current financial statements.

Following guidelines when changing accounting policies due to new standards.

Use of cloud-based applications to enhance efficiency and accuracy in financial disclosures.

Transactions occurring between the end of the reporting period and the financial report authorization date.

The date the financial statements are signed off, marking the boundary for reporting events.

Adjustments made to financial statements reflecting conditions that existed at the end of the reporting period.

Court case outcomes or new info affecting asset valuations after reporting period.

Entities must disclose details about events up to the authorization for issue date in financial statements.

Events that are beneficial, occurring after the reporting period.

Adverse events revealing conditions that arose after the reporting period.

Only adjusting events require changes in the financial statements; non-adjusting are only disclosed.

Estimates reflecting uncertain amounts that can be adjusted with new evidence from subsequent events.

Entities should update existing disclosures to reflect information gained from adjusting events.

A decrease in the worth of investments occurring after the reporting period.

Settlements or rulings influencing previous conditions at the reporting period end.

Adjustments to inventory values based on post-reporting period selling prices.

Acquisition or disposal of a subsidiary occurring after the reporting period.

Dividends announced after the end of the reporting period that aren't recognized as liabilities.

Potential liabilities disclosed that may become real based on subsequent events or court outcomes.

Financial statements can't be prepared on a going concern basis if liquidation is intended.

Selling significant assets after the reporting period which is classified as non-adjusting.

Tax rate changes enacted after the reporting period considered as non-adjusting events.

Legal disputes that start due to events after the reporting date and remain non-adjusting.

Material non-adjusting events must be disclosed in financial statement notes.

Changes to loan agreements made after the reporting period, categorized as non-adjusting.

Plans communicated after the reporting period to restructure a business considered non-adjusting.

Taking control of significant assets by the government after the reporting date, treated as non-adjusting.

Income taxes may vary based on new tax laws after the reporting period but remain non-adjusting.

Events that provide additional evidence of conditions that existed at the end of the reporting period.

Determining if acquisition events after the period are adjusting or non-adjusting.

Monetary amounts used due to uncertainty in financial statements, like credit losses.

A provision for possible future credit losses on receivables.

The estimated selling price of inventory minus costs to sell.

The estimated price to sell an asset or transfer a liability in a current transaction.

Revisions to accounting estimates based on new information, recognized prospectively.

Retrospective adjusts past statements; prospective adjusts current and future.

Revisions must adjust income and expenses for the current or future periods.

An estimate of future warranty claims from sales.

Entities must disclose nature and impact of estimate revisions on financials.

The financial reporting period currently being evaluated or reported.

Alterations in the methods of accounting that may impact financial statements.

An estimate of future losses based on current receivables and historical data.

Recognizing changes in estimates from the period of change forward.

Adjustments made to rectify mistakes from previous periods.