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Respected Tutor,
if impairment in value of asset (fall in value of asset) adjusting events then why fall in value of investments non adjusting event. both are fall in vallue in asset so both should be adjusting events???The fall in the value of an asset is not automatically an adjusting event!!
You have to ask yourself – if at the date of the SOFP you new about what happened later, then would you have changed the value. If yes, then it is an adjusting event. If not, the it is non-adjusting and there will be a note. (Assuming in both cases that is material).
The one asset that is likely to become an adjusting event is inventory. But that is because the accounting standard says that inventory must be valued at the lower of cost and net realisable value. That is not the case for other assets.
Have you watched my free lectures on this? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
Respected sir,
wot is investment from the point of view of IAS 10? Few example of investment please….!!!IAS 10 is nothing to do with investments – it is about events after the reporting date!!
respected sir,
“investment” word is not understood by me. pls explain investment with example…!!!I repeat – it has nothing to do with IAS 10. So a future please start a new thread when you are asking about something different!!
An investment is something you pay money for, for the long term. So it could be buying shares in another company, but more likely(for Paper F3) it is buying non-current assets.
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