medium10 pts · first answer countssubsequent-events

Customer bankrupt after year end

The year ends on 31 March. On 20 April, before the financial statements are approved, a major customer who owed money at year end is declared bankrupt. How should this be treated?

A.Ignore it, because it happened after year endB.Disclose it only as a non-adjusting eventC.Treat it as a fraud and report it to regulatorsD.Adjust the receivable, because it gives evidence about a condition existing at year end

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Customer bankrupt after year end

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