CERTYNEX IFRS ACADEMY

A customer of Milbouël, in arrears since the summer, is put into liquidation in February. The accountant immediately classifies the event as non-adjusting, 'since the liquidation comes later'. What is the error?

Failing to examine whether the liquidation reveals a financial position already deteriorated at the reporting date.

Analysing the event at all, when customer bankruptcies are out of scope.

Failing to recognise the loss in equity.

Failing to postpone authorisation of the accounts until the liquidation proceedings close.