The correct answer is:
|
|
Adjust |
Disclose |
Do nothing |
|
Event 1 |
|
X |
|
|
Event 2 |
|
X |
|
|
Event 3 |
X |
|
|
IAS 10 requires the financial statements to be adjusted for events that reflect conditions that existed at the reporting date. Only event 3 is indicative of conditions at the reporting date - ie the recoverability of the receivable balance. Events 1 and 2 are non-adjusting events, however, they are material so they should be disclosed.
