The event in a subsequent period that is an example of a condition existing at the reporting date is:
A) loss resulting from a flood.
B) discovery of fraud or errors.
C) purchase of a business.
D) the issue of preferred shares.

Question

Quizplus · Accepted Answer

The discovery of fraud or errors is considered an event in a subsequent period that exemplifies a condition existing at the reporting date because it reveals information about the company's financial state that was true at the reporting date but was only discovered afterwards.

The Event in a Subsequent Period That Is an Example