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Subsequent events – ACCA Audit and Assurance (AA)

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    • No – an eom only draws attention to something that is absolutely fundamental to the users’ understanding of the financial statements. Some non-adjusting events might justify an eom, but not necessarily.

  4. Hi,

    Is it possible that a non adjusting event is so important that may compromise the going concern? If that is the case the company would need to issue a FS on a break up basis and therefore that non adjusting event become an adjusting event..

    In your example if that fire had destroyed all the inventory and most of the NCA the company may not be able to operate as a going concern and consequently that non adjusting event become an adjusting event despite occurring after year end. Is that correct?

    Thanks a lot for your help

    • I think not because there was no evidence that inventory will be destroyed at the y/e. But as it’s going to effect the company it’s utterly important for the users to know the situation so we will disclose this in the emphasis of matter paragraph.

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