AASB 110 requires that adjusting events that meet two broad criteria should be:
A) Reflected in the financial information in the statements if it is material and relates to an item that would normally be reflected in the financial statements.
B) Always disclosed by way of a note to the financial statements.
C) If an unfavourable event, disclosed as a contingent liability.
D) If an unfavourable event, reflected in the financial statements; if a favourable event, disclosed by way of note.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 110 requires that adjusting events which meet the criteria of being material and relating to an item that would normally be reflected in the financial statements must be reflected in the financial information presented in the financial statements. Therefore, option A is correct. Options B, C, D, and E are incorrect as they do not reflect the requirements of AASB 110.

AASB 110 Requires That Adjusting Events That Meet Two Broad