• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

adjusting or non-adjusting?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › adjusting or non-adjusting?

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by Kim Smith.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 19, 2021 at 12:52 pm #632129
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    maam if equity dividend is declared after yr end date(but before authorisation of FSs) then in that case is it an adjusting or non-adjusting event?

    assume that the dividend was proposed prior to yr end date.

    August 19, 2021 at 1:18 pm #632132
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6786
    • ☆☆☆☆☆

    Same principle as here … https://opentuition.com/topic/restructuring-provision-yes-no

    DE FACTO there was no obligation at the reporting date. The company is under no obligation to pay a dividend until it is declared.

    August 19, 2021 at 2:00 pm #632133
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    noted ma’am. sorry for making you reiterate the same thing twice.

    Just one thing, to directly retailed to above post, but related to IAS 37 and IAS 10.

    restructuring provision requires that actual costs should be used even if they become known after reporting date, so does this rule by any chance hold true for other provisions also?

    August 19, 2021 at 2:49 pm #632136
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6786
    • ☆☆☆☆☆

    Measurement for ANY provision under IAS 37 is “the best estimate of the expenditure required to settle the present obligation at the end of the reporting period”.

    So IF the obligation is DE FACTO settled before the financial statements are finalised – that settlement is an adjusting event and the provision can be adjusted (if materially different to the draft accounts).

    But if it’s not settled – it can only remain an estimate.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • daliuske on Financial management objectives – ACCA Financial Management (FM)
  • ksmigulec on Management of Working Capital  – Introduction – ACCA Financial Management (FM)
  • tmatanga2008@gmail.com on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)
  • John Moffat on Capital asset pricing model (part b) – ACCA Financial Management (FM)

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy