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Non-adjusting event-2015 June MCQs 3

SShanna10y ago
Hi sir, I just wonder the reason why choice A belongs to Non adjusting event, only because it occurs during the y/e 31 March 2016?
MikeLittleMikeLittleTutor10y ago#1
"A public announcement in April 2015 of a formal plan to discontinue an operation which had been approved by the board in February 2015" A non-adjusting event is one that DOES NOT relate to a condition or situation that existed at the accounting date. Although the board of directors had made their decision in February (so before the accounting date) that decision was not put into the public domain until AFTER the accounting date and, at any time between February and 31 March, those directors COULD have changed their minds Basically, at 31 March, there was no definitive position that the company was in so the announcement in April did not relate to a condition or situation that did exist at 31 March, 2015 OK?
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