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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.
In this question 3 is corret answer.I didn’t understand why it is correct..
Could you explain why we disclose all non-adjusting events not just material? I mean if it’s non-material event we have to disclose it in notes?
Thanks in advanceIt is a bit of an unfair play with words 🙂
We only disclose non-adjusting events if they are material.
If they are not material then we do not refer to them as ‘non-adjusting events’ – we don’t refer to them because we don’t bother about them 🙂
So, by definition, ‘non-adjusting events’ are material 🙂
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