CERTYNEX IFRS ACADEMY

Drairade classifies as 'non-adjusting' a judgment handed down after the reporting date on an accident that occurred during the year, on the ground that the judgment comes later. What is the error?

A judgment is always outside the scope of IAS 10.

There is no error: every event after the reporting period is non-adjusting.

The judgment should have been ignored as it has no effect on the year's cash.

Classification must rest on the condition revealed, which existed at the reporting date, not on the date of the judgment.