Using the requirements set out in HKAS 10 ‘Events after the Reporting Period’, which of the following would be classified as an adjusting event after the reporting period in financial statements ended 31 March 2018 that were approved by the directors on 31 August 2018? A A reorganisation of the entity, proposed by a director on 31 January 2018 and agreed by the board on 10 July 2018 B A strike by the workforce which started on 1 May 2018 and stopped all production for 10 weeks before being settled C The receipt of cash from a claim on an insurance policy for damage caused by a fire in a warehouse on 1 January 2018. The claim was made in January 2018 and the amount of the claim had not been recognised at 31 March 2018 as it was uncertain that any money would be paid. The insurance entity settled with a payment of $1.5 million on 1 June 2018 D The entity had made large export sales to the United States during the year. The year-end receivables included $2 million for amounts outstanding that were due to be paid in US dollars between 1 April 2018 and 1 July 2018. By the time these amounts were received, the exchange rate had moved in favour of the entity
) Using the requirements set out in HKAS 10 ‘Events after the Reporting Period’, which of the
following would be classified as an adjusting event after the reporting period in financial
statements ended 31 March 2018 that were approved by the directors on 31 August 2018?
A A reorganisation of the entity, proposed by a director on 31 January 2018 and agreed by the
board on 10 July 2018
B A strike by the workforce which started on 1 May 2018 and stopped all production for 10
weeks before being settled
C The receipt of cash from a claim on an insurance policy for damage caused by a fire in a
warehouse on 1 January 2018. The claim was made in January 2018 and the amount of the
claim had not been recognised at 31 March 2018 as it was uncertain that any money would
be paid. The insurance entity settled with a payment of $1.5 million on 1 June 2018
D The entity had made large export sales to the United States during the year. The year-end
receivables included $2 million for amounts outstanding that were due to be paid in US
dollars between 1 April 2018 and 1 July 2018. By the time these amounts were received, the
exchange rate had moved in favour of the entity
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