Under AS 4 as applicable in 2021, which events occurring after the balance-sheet date but before approval of the financial statements normally require adjustment?
A. A customer’s insolvency confirming impairment of a receivable already existing at the balance-sheet date.
B. A decline in investment market values caused by conditions arising after that date.
C. Declaration of an ordinary dividend after that date.
D. Determination of the purchase cost of an asset acquired before that date.
(A) and (D) only
Adjusting events supply evidence about conditions existing at the balance-sheet date. Customer insolvency confirming an existing impairment and final determination of an earlier purchase cost qualify. A later market decline and a dividend declared later normally do not. Thus A and D.
Important Questions from Indian Accounting Standards and IFRS
- Preparation of consolidated Balance Sheet of Holding Company and its subsidiary company is done as per
Match the items of List - I with those of List - II and indicate the correct code :
List - I (Accounting Standard) List - II (Relationship) (a) AS - 6 (iii) Depreciation Accounting (b) AS - 3 (iv) Accounting for Cash Flow Statement (c) AS - 10 (ii) Accounting for Fixed Assets (d) AS - 21 (i) Accounting for Consolidated Financial Statements Which one of the following Ind AS is related to “The Effects of Changes in Foreign Exchange Rates”?
- Accounting Standard-6 is meant for
AS–10 (new) has come into effect from
