Course: AFS

Instructor: Abdul Basit

ID: 13853
Assignment: 1

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A) Dividends are reported in the declaration of changes in equity and the notes to the
financial statements (amount per share, etc)

B) You won't be able to make a provision for this because you lack the funds. The next
question is whether or not you make disclosure. You don't need to do that either, because
the chances are slim.

C) The same as before, except that in this case, the unfavourable event is more likely to
occur. As a result, I believe you should disclose this in the notes.

D) This is a non-adjusting event because it occurred during the reporting period and is
indicative of a condition that occurred AFTER the reporting period ended. Non-adjusting
events should be revealed if they are so important that not knowing about them will
impair users' ability to make accurate assessments and decisions. 

(a) the event's nature and

(b) a financial impact estimate or a declaration that the financial impact estimate is fair It
is impossible to create.

E) There is a stipulation in this case. This must be disclosed in the notes. Furthermore, the
restricted cash amount should not be included in your cash and cash equivalents for cash
flow statement purposes.

F) Control, I believe, is the key word here, implying that the investee is a subsidiary. Non-
current assets can include the investment in a subsidiary. You must make all required
disclosures regarding subsidiaries.
G)
H) Topic 225-20 extraordinary objects is covered by US GAAP Codification. Because this is
a rare and uncommon occurrence, you should report it as an outstanding item and present
it individually on the income statement. You are not required to call anything exceptional
under the International Financial Reporting Standards (IFRS). This would be a one-of-a-
kind object.

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