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    Question

    A solvency margin breach is cured via capital infusion

    after reporting date but before approval. How to report?
    A Adjusting event; remove going concern warning Correct Answer Incorrect Answer
    B Non-adjusting event; disclose material uncertainty and subsequent event Correct Answer Incorrect Answer
    C Ignore as cured Correct Answer Incorrect Answer
    D Recognize as equity at year-end Correct Answer Incorrect Answer
    E Recognize as revenue Correct Answer Incorrect Answer

    Solution

    Breach existed at year-end; subsequent cure is non-adjusting; disclose GC uncertainty and event.

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