Event a) 2 January 20X9: A flood caused major damage to the company's head office. The majority of furniture was destroyed and the building was deemed unsafe until repairs are made. b) 3 January 20X9. The company announced a major change to its pension plan. The adjustments significantly reduce the company's obligation going forward. e) 8 January 20X9: The company received a income tax re-assessment relating to 20x7. d) 22 January 20X9: A major lawsuit was settled. The lawsuit had been ongoing throughout 20X8. Final proceedings took place in December but the official ruling and court documents were not released until January a) 30 January 20X9 The company issued a new class of preferred shares to an institutional investor through a private placement Adjusting or N
Event a) 2 January 20X9: A flood caused major damage to the company's head office. The majority of furniture was destroyed and the building was deemed unsafe until repairs are made. b) 3 January 20X9. The company announced a major change to its pension plan. The adjustments significantly reduce the company's obligation going forward. e) 8 January 20X9: The company received a income tax re-assessment relating to 20x7. d) 22 January 20X9: A major lawsuit was settled. The lawsuit had been ongoing throughout 20X8. Final proceedings took place in December but the official ruling and court documents were not released until January a) 30 January 20X9 The company issued a new class of preferred shares to an institutional investor through a private placement Adjusting or N
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject : Accounting
Transcribed Image Text:Consider the following events that took place in January 20X9.
Required:
Determine whether the event is an adjusting or non-adjusting event for the 31 December 20X8 financial statements.
Event
a)
2 January 20X9: A flood caused major damage to the company's head office. The majority of furniture was destroyed and
the building was deemed unsafe until repairs are made.
b)
3 January 20X9: The company announced a major change to its pension plan. The adjustments significantly reduce the
company's obligation going forward.
c) 8 January 20X9: The company received a income tax re-assessment relating to 20X7.
d)
22 January 20X9: A major lawsuit was settled. The lawsuit had been ongoing throughout 20X8. Final proceedings took
place in December but the official ruling and court documents were not released until January,
a)
30 January 20X9. The company issued a new class of preferred shares to an institutional investor through a private
placement
Adjusting or Non-adjusting
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