Birong Plc.issued a £200 million preference share issue after reporting date.What is the classification of this subsequent event and what is the accounting treatment prescribed in IAS 10?
A)adjusting event; no disclosure necessary
B)adjusting event; with appropriate disclosure
C)non-adjusting event; no disclosure necessary
D)non-adjusting event; with appropriate disclosure

Question

Quizplus · Accepted Answer

The subsequent event of Birong PLC issuing a £200 million preference share after the reporting date is a non-adjusting event. This is because it occurred after the reporting period and does not change the financial statements' fundamental content or values. However, it requires appropriate disclosure in the financial statements under IAS 10. Therefore, the best answer is D, non-adjusting event, with appropriate disclosure.