On 31/1/2021 Al-Ihsan Company finished preparing the financial statements for the year 2020, and on 1/3/2021 the lists were approved by the Board of Directors for issuance. On March 25, 2021 the financial statements were approved by the company's general assembly. Here are some of the most important events: 

Required: A statement of how events are treated under IAS 10 on events after the reporting period: 

1. On December 31, 2020, the company had merchandise costing 40,000 dinars and the realizable value of which was 37,000 dinars, which were sold on February 22, 2021 at a price of 19,800 dinars. 

2. On December 31, 2020, there was a case filed against the company with a claim amounting to 60,000 dinars, and a provision was made for that case in the amount of 45,000 dinars. On February 25, 2021 the court issued its final decision in the case, which obligated the company to pay 40,600 dinars. 3. On December 31, 2020, the company had financial investments for trading in shares that cost 40,000 dinars, and their market value on December 31, 2020 amounted to 43,000 dinars. On February 25, 2021, the market value of the investments amounted to 11,500 dinars. 

4. A stock that the Arab company had at a cost of 14,500 dinars and a realizable value of 13,000 dinars was exposed to a fire, which led to its complete destruction and was not insured. 

5. On 20/2/2021, an indicator appeared indicating the possibility of liquidating the company in the coming period

Answer rating: 100% (QA)

Adjusting event means an event whose certain conditions existed before the reporting date and furthe... View the full answer