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Which of the following statements about limited liability companies’ accounting is/are correct?
1 A revaluation surplus arises when a non-current asset is sold at a profit.
2 The authorised share capital of a company is the maximum nominal value of shares and loan
notes the company may issue.
3 IAS 10 Events after the reporting period requires all non-adjusting events to be disclosed in the
notes to the financial statements.
A 1 and 2 only
B 2 only
C 3 only
D None of the statements are correct
The kit says the answer is C
But I think it should be D since disclosure is only required if non-adjusting events are material.
Please help out.The question is playing with words a bit.
The reason is that an even is only called a non-adjusting event if it is material. If it is not material then it is not regarded as being an adjusting or non-adjusting event.
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