20 Financial Accounting. Please answer all ASAP. Thank you very much.

20. What is the accounting treatment required for the financial statements when an event after the closing date represents a new situation that arises after the closing date and has significant impacts on the subsequent financial statements?

a) No adjustments or notes required, as this will be reflected in the following year's financial statements.

b) No accounting adjustment, but addition of a note to the financial statements specifying the nature of the event and an estimate of its financial impact.

c) Correct the amounts in the financial statements and the corresponding notes by specifying the nature of the event and an estimate of its financial impact.

d) Correct the amounts in the financial statements, but no notes to the financial statements are necessary.

e) None of the above.

21. A financial liability is distinguished from a non-financial liability:

a) considering whether the liability is contractual or not.

b) by considering the present or potential nature of the liability.

c) considering the current or non-current nature of the liability.

d) all of the above

e) none of the above.

22. The Miami company BIO-COVID commits enormous amounts for its current research and development activities in order to discover vaccines for different diseases. So :

a) The company recognizes all amounts committed as assets

b) The company capitalizes expenses that exceed the threshold of 10% of annual turnover.

c) The company capitalizes only development costs that exceed the threshold of 10% of annual revenue.

d) The company decides to recognize research and development costs as expenses to minimize the tax payable.

e) None of the above.

23. PATATI-PATATA INC. engages in commercial activities in several economic sectors. In 2050, it decided to abandon the office rental business. As of December 31, 2050, PATATI-PATATA INC. must :

a) present, in the statement of net income, three items of information relating to discontinued operations: income before taxes, income taxes, net income from discontinued operations.

b) present, in the statement of net income, two information relating to discontinued operations: pre-tax income, net income from discontinued operations.

c) present, in the statement of net income, only one information relating to the discontinued operations: the net income of discontinued operations.

d) None of the above.

e) All of the above.

24. LES FORAGES BLEU ET CIEL is a Canadian company that has been operating in the mining industry for many years. On January 1, 2050, it began new mining exploration in the Zambezi, the industrial equipment for which cost 100 million Canadian dollars. Zambezi environmental laws require the Canadian company to set aside the following amounts in order to proceed with the dismantling of industrial equipment scheduled for December 31, 2060.

Date	Expected Amount ($)
2050-12-31	2 000 000
2052-12-31	3 000 000
2054-12-31	5 600 000
Total	10 600 000

The relevant discount rate is 8% per year. Calculate the amount of the provision to recognize on January 1, 2050.

Answer:

Date	Undiscounted amount	Discounted amount
2050-12-31
2052-12-31
2054-12-31
Total

25. If the entity reclassifies financial assets in accordance with IFRS 9 Financial Instruments, it must apply the reclassification prospectively from the date of reclassification. The latter corresponds to:

a) On the date of the meeting of the Board of Directors devoted to this subject.

b) On the first day of its next reporting period.

c) As of December 31 of the year.

d) None of the above