Which event that occurred after the end of the financial year under audit but prior to issuance of the auditor's report would NOT require disclosure in the financial statements?
A) a major drop in the quoted market price of the shares of the corporation
B) loss of plant or inventories as a result of fire or flood
C) settlement of litigation when the event giving rise to the claim took place after the balance sheet date
D) sale of a bond or share issue

Question

Quizplus · Accepted Answer

A major drop in the quoted market price of the shares is considered a non-adjusting event as it reflects conditions that arose after the balance sheet date and does not require disclosure in the financial statements.

Which Event That Occurred After the End of the Financial