Should be disclosed as non-adjusting events

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Problem 1: In respect of loans classified, as current liabilities, which of the following events that occur between the end of the reporting period and the date the financial statements are authorized for issue, should be disclosed as non-adjusting events in accordance with PAS 10?

Group of answer choices

a. Refinancing on a long-term basis.

b. The granting by the lender of a period of grace to rectify a breach of a long-term loan arrangement ending at least twelve months after the reporting period.

a, b and c

c. Rectification of a breach of a long-term loan arrangement.

Problem 2: Which of the following factors shall not be taken into account when applying option pricing models?

Group of answer choices

a. Expected volatility of the share price

b. Risk-free interest rate for the life of the option

c. Life of the option

d. Vesting conditions

e. Dividends expected on the shares

Reference no: EM132785694

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