The rationale for disclosing material subsequent events include all of the following except
A)these events may affect the users predictions about future cash flows
B)without the disclosures the financial information may be misleading
C)such disclosures will help convict management of hiding significant economic transactions
D)reporting such events is consistent with the concept of full disclosure

Question

Quizplus · Accepted Answer

The rationale for disclosing material subsequent events includes A, B, and D, as disclosing such events can help users make more informed predictions about future cash flows, ensure that the financial information is not misleading, and uphold the concept of full disclosure. However, the disclosure does not necessarily relate to convicting management of hiding economic transactions.

The Rationale for Disclosing Material Subsequent Events Include All of the Following