AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment.The two criteria are:
A) (a) provides an indication that conditions may have existed at balance sheet date; or (b) reveals additional solid evidence of a condition that existed at balance sheet date.
B) (a) provides additional evidence of conditions that existed at the date the audit report was signed; or (b) reveals for the first time a condition that existed at date of completion.
C) (a) provides an indication that conditions may have existed at date of completion; or (b) reveals additional solid evidence of a condition that existed at date of completion.
D) (a) provides additional evidence of conditions that existed at reporting date; or (b) reveals for the first time a condition that existed at reporting date.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 110 specifies that adjusting events should be considered against two criteria to determine their treatment. The first criterion is whether they provide additional evidence of conditions that existed at reporting date. The second criterion is whether they reveal for the first time a condition that existed at reporting date. Therefore, option D is the correct answer.

AASB 110 Specifies That Adjusting Events Should Be Considered Against