AASB 110 refers to subsequent events that relate to new matters that have arisen after balance date.Which of the following occurrences after balance date is not an example of a new event?
A)substantial borrowings or share issues
B)specific information on the size of a bad debt that had previously been considered doubtful
C)a major fire or flood loss
D)becoming a party to a legal action

Question

Quizplus · Accepted Answer

The specific information on the size of a bad debt that had previously been considered doubtful would be considered a measurement adjustment, rather than a subsequent event, as it relates to information that existed at the balance date. Subsequent events refer to events that occur after the balance date and provide additional information about the entity's financial position at the balance date. The other options (A, C, D) all describe events that would be considered subsequent events as they pertain to new events or conditions that have arisen after the balance date.

AASB 110 Refers to Subsequent Events That Relate to New