Post balance sheet events: Post balance sheet events have a
significant effect on the values shown in the accounts, and occur after
the balance sheet date but prior to the date on which the accounts are approved
by the directors. Some of those events make
more information available rather than altering the numbers as such. These are called adjusting events. An example of such an
event is a sale of a fixed asset when the sale is agreed during the financial
period but the final price is agreed after the end of the period. The final
price will be reflected in the balance sheet and the P &L Account. If a post balance sheet event is not an adjusting event but
it is material, then it should be disclosed separately in the results.
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