Which of the following events would be classified as an adjusting event?

The settlement of a court case is classified as an adjusting event because it provides evidence of conditions that existed at the reporting date and impacts the financial statements. In accordance with the relevant accounting standards, particularly IAS 10 Events After the Reporting Period, an adjusting event is one that occurs after the reporting period ends but reveals information about a situation that existed prior to the report date. Therefore, any court case that is settled after the reporting period but pertains to events or transactions occurring before that period should adjust the financial statements to accurately reflect any obligations or potential liabilities.

This means that, in practice, if a company was involved in litigation and the outcome of that case was decided after the reporting date, it might reveal a liability that the company needed to recognize in its financial statements. Adjusting events require changes in the figures or additional disclosures in the financial statements, providing a more accurate view of the company's financial position. This is crucial for ensuring that users of the financial statements are not misled regarding the company’s financial situation.

The other events listed, while significant in their own right, do not qualify as adjusting events according to the accounting standards because they do not reflect conditions existing prior to the reporting date. These would typically be considered non-adjusting events, which may