Which of the following material after-reporting-date events is not considered a non-adjusting event?
A) a major acquisition of capital assets after the reporting date
B) destruction of inventory by vandals after the reporting date
C) changes in tax rates or tax laws enacted or announced after the reporting date
D) destruction of inventory on consignment by vandals before the reporting date

Question

Quizplus · Accepted Answer

The destruction of inventory on consignment by vandals before the reporting date is considered a prior period adjustment and is therefore adjusted in the financial statements of an earlier period, rather than the current period. All other options are non-adjusting events that do not require adjustments to the financial statements after the reporting date.

Which of the Following Material After-Reporting-Date Events Is Not Considered