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Sir in Romm question scenerio there was an event where assets were destroyed due to a natural disaster and their FV decreased however in Financial statements the company didn’t decreased their asset value however they did mention in the accounts that the value of the asset in F/S is before the event.
So I made a Romm risk mentioning that the amount of asset is misstated and the management should write down the value of the asset, so is my risk relevant for the examiner or did I just wrote a wrong risk .
If the event was during the reporting the asset would be impaired and so should have have been written down to its recoverable amount.
If the event was after the reporting date, it would be non-adjusting (IAS 10) – in this case the carrying amount cannot be written down, but the financial effect would be disclosed in the notes to the financial statements.
Yes the event occured during the fiancial year and the asset comes under IAS-41 biological asset.
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