Accounting · Events After the Reporting Period
Which one of the following best describes the difference between how an adjusting and a non-adjusting event after the reporting period are reported in the financial statements?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1An adjusting event gives rise to a disclosure whereas a non-adjusting event does not
- 2Non-adjusting events may be disclosed whereas adjusting events are adjusted in the financial statements✓
- 3An adjusting event is one that arises after the reporting period, where a non-adjusting event gives further information abou t conditions that existed at the reporting date
- 4Both events have an impact on the financial statements but an adjusting event has a material impact whereas a non-adjusting event has an immaterial impact
Correct answer
Non-adjusting events may be disclosed whereas adjusting events are adjusted in the financial statements
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