The subsequent event that is an example of a condition occurring after the reporting date is:
A) realisation of recorded year-end receivables at a different amount than recorded.
B) settlement of recorded year-end estimated product warranty liabilities at a different amount than recorded.
C) determining the proceeds of assets sold before the end of the reporting period
D) purchase of a business.

Question

Quizplus · Accepted Answer

The purchase of a business is an event that occurs after the reporting date and does not provide evidence of conditions that existed at the end of the reporting period.

The Subsequent Event That Is an Example of a Condition