Harrier Plc has borrowed substantially using foreign currency loans.An unexpected major downturn in the French economy after reporting date has substantially weakened the euro,increasing the size of the debt materially.According to IAS 10,how should this event be reported in the financial statements?
A)The foreign currency debt should be restated at the new exchange rates and the loss recognised.
B)No reporting is required.
C)Harrier Plc's bank and/or debenture trustees should be notified of the potential that the company may break its debt covenant.
D)A note disclosure of the event should be made.

Question

Quizplus · Accepted Answer

The event is a non-adjusting event after the reporting period, so it should be disclosed in the notes to the financial statements, as it provides information about conditions that arose after the reporting period.

Harrier Plc Has Borrowed Substantially Using Foreign Currency Loans