IAS 10 Events after the Reporting Period

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  1. Avatar of mohammadia mohammadia says:
    April 17, 2013 at 6:54 pm

    Just as the receivables example though it was found out later the accounts were changed

    So what about the factory fire it was found out later before they were published and even the amount was material

    So why didn’t we adjust it ??

    THANK YOU

    • Avatar of johnmoffat johnmoffat says:
      April 17, 2013 at 7:45 pm

      Because at the date of the Statement of Financial Position the factory existed.
      IAS 16 says that we should show non-current assets at the net book value, but IAS 2 says that we show inventory at the lower of cost and net realisable value.

  2. Avatar of wesley2291569 wesley2291569 says:
    April 17, 2013 at 1:37 pm

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  3. Avatar of Accountaholic Accountaholic says:
    March 11, 2013 at 10:55 pm

    Hello Tutor,

    Can you please explain example 3 about inventory from this lecture?
    As per your example, the value of and item in the inventory as at 31.12.08 was $100,000. However, the item was then sold for $40000 on 05.01,09.

    Is it not a transaction for the year 2009? As at 31.12.08 the value was $100,000 only? Then why this needs to be adjusted?
    Thanks.

    PS: I love all your lectures. They are brilliant stuff. Great work.

    • Avatar of johnmoffat johnmoffat says:
      April 17, 2013 at 5:31 pm

      Inventory should be valued at the lower of cost and net realisable value. Since we found out only 5 days after the year end that its sales value was only $40,000, it is an adjusting event and so we should change the value of the inventory – its sales value was only 40,000 at the year end (even though we only found out later).

  4. Avatar of coolgirl1984 coolgirl1984 says:
    December 6, 2012 at 9:55 pm

    They can transfer owing amount into Irrecoverable debts Account

  5. Avatar of allanzhang2008 allanzhang2008 says:
    November 1, 2012 at 10:12 am

    Could anyone explain (4) in Question 2 ? page 131. Many thanks:)

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