The following are material events that occurred for Virgil Ltd between the reporting date and the date when the financial report is authorised for issue.
$\begin{array}{|l|l|}
\hline \text { I}& \text { Bankruptcy of a customer that occurs after the reporting date } \
\hline \text { II } & \begin{array}{l}
\text { Determination after the reporting date of the costs assets purchased before the } \
\text { reporting date }
\end{array} \
\hline \text { III} & \begin{array}{l}
\text { Decline in market value of investments after the reporting date of investments } \
\text { purchased before the reporting date }
\end{array} \
\hline \mathrm{IV} & \text { Dividends declared after the reporting date } \
\hline \mathrm{V} & \text { A lawsuit filed by a customer after the reporting date } \
\hline \text { VI }& \text { Discovery of fraud that shows that the financial report is incorrect }\
\hline
\end{array}$
Which of the following options identify all the non-adjusting events for Virgil Ltd,in accordance with AASB 110 Events After the Reporting Period?
A) I, II and III
B) II, III and IV
C) I, II and VI
D) III, IV and V

Question

The following are material events that occurred for Virgil Ltd between the reporting date and the date when the financial report is authorised for issue. 
$\begin{array}{|l|l|}
\hline \text { I}& \text { Bankruptcy of a customer that occurs after the reporting date } \
\hline \text { II } & \begin{array}{l}
\text { Determination after the reporting date of the costs assets purchased before the } \
\text { reporting date }
\end{array} \
\hline \text { III} & \begin{array}{l}
\text { Decline in market value of investments after the reporting date of investments } \
\text { purchased before the reporting date }
\end{array} \
\hline \mathrm{IV} & \text { Dividends declared after the reporting date } \
\hline \mathrm{V} & \text { A lawsuit filed by a customer after the reporting date } \
\hline \text { VI }& \text { Discovery of fraud that shows that the financial report is incorrect }\
\hline
\end{array}$
Which of the following options identify all the non-adjusting events for Virgil Ltd,in accordance with AASB 110 Events After the Reporting Period?
A) I, II and III
B) II, III and IV
C) I, II and VI
D) III, IV and V

Quizplus · Accepted Answer

Non-adjusting events are those that provide evidence of conditions that arose after the reporting period. In this case, the decline in market value of investments (III), dividends declared (IV), and a lawsuit filed after the reporting date (V) are non-adjusting events as they do not relate to conditions existing at the reporting date.

The Following Are Material Events That Occurred for Virgil Ltd