multiple choice accounting PAS10

4. Entity A's inventories on December 31, 20x1 have a cost of December 31, 20x1, but before the financial statements were PAS 10 198 PROBLEMS PROBLEM 1: MULTIPLE CHOICE 1. ABC Co. completes the draft of its December 31, 20x1 year-end financial statements on January 31, 20x2. On March 1, 20x2. the management of ABC Co. authorizes the financial statements for issue to its supervisory board. The supervisory board is made up solely of non-executives and includes representatives of employees and other outside interests. The supervisory board approves the financial statements on March 10, 20x2. The financial statements are made available to shareholders and others on March 14, 20x2. The shareholders approve the financial statements at their annual meeting on March 23, 20x2 and the financial statements are then filed with a regulatory body on April 1, 20x2. For purposes of PAS 10, what is the date of authorization of the financial statements? a. March 1, 20x2 c. March 14, 20x2 b. March 10, 20x2 d. March 23, 20x2 2. According to PAS 10, these are events that provide evidence of conditions that existed at the end of the reporting period. Events after the reporting period c. Adjusting events b. Non-adjusting events d. all of these a. a. 3. Which of the following events after the reporting period are treated as adjusting events? A significant decline in the fair value of investments in stocks. b. A litigation arising from an accident that occurred after the reporting period. Declaration of dividends after the reporting period. d. Discovery of prior-period fraud or errors. P100,000 and a net realizable value of P80,000. Shortly after