Share-based payment transactions – cash-settled or equity-settled

Chapter 18 – Events After the Reporting Period Page 251 11 Self Test Questions Chapter 18 1. The Sarin Companys financial statements for the year ended 30 April 20X8 were approved by its finance director on 7 July 20X8 and a public announcement of its profit for the year was made on 10 July 20X8. The board of directors authorised the financial statements for issue on 15 July 20X8 and they were approved by the shareholders on 20 July 20X8. Under IAS10 Events after the reporting period, after what date should consideration no longer be given as to whether the financial statements to 30 April 20X8 need to reflect adjusting and non-adjusting events? A 7 July 20X8 B 10 July 20X8 C 15 July 20X8 D 20 July 20X8 2. Are the following statements true or false according to IAS10 Events after the reporting period? 1 Notes to the financial statements should give details of all material adjusting events included in those financial statements. 2 Notes to the financial statements should give details of material non- adjusting events which could influence the economic decisions of users. Statement 1 Statement 2 A False False B False True C True False D True True Chapter 18 – Events After the Reporting Period Page 252 3. Are the statements about the classification of each of the following events after the end of the reporting period but before the financial statements are authorised for issue true or false, according to IAS10 Events after the reporting period? 1 A decline in the market value of investments would normally be classified as an adjusting event. 2 The settlement of a long-running court case would normally be classified as a non-adjusting event. Statement 1 Statement 2 A False False B False True C True False D True True 4. The Citril Companys financial year end was 31 October 20X7. Between the date on which the financial statements for this year were completed and the date on which they were due to be authorised for issue, a number of events took place. According to IAS10 Events after the reporting period, which TWO of the following four events should be classified as non-adjusting events requiring disclosure? A The Citril Company announced the discontinuation of its assembly operation B The Citril Company entered into an agreement to purchase the freehold of its currently leased office buildings C The Citril Company received CU 150,000 in respect of an insurance claim measured in the 31 October 20X7 financial statements at CU90,000 D A mistake was discovered in the calculation of the allowance for uncollectible trade receivables, leading to it being understated in the 31 October 20X7 financial statements by CU220,000