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Hi, Mister John. Please help me to find an aswer for this question.
Y co company prepares statements for the year end 30 Sep 2011 which are approved and issued on 31 Dec 2011
On 31 Oct 2011, an employee was dismissed from his position.In Nov 2011 Y Co received notice from court action for unfair dismissal.
In accordance with IAS 10 Events After the Reporting Period, what would be the accounting treatment of the claim for unfair dismissal?
— As event appeared after the year end, even if its probable , it should be disclosed to notes. Am i right ?
It is an adjusting event and should be recognised in the accounts as a provision.
Although it is an event after the reporting period, see my feel lectures on IAS 37.
I have watched them very carefully 🙂
What confuses me is that we have not dismissed him during the year and sacked him off after the year end. Year end is September, we dismissed him in October and litigation started in November. The BPP says that if litigation starts after the year end , disclose 🙁
Oops – I am sorry, I read the date wrongly 🙁
You were correct before. It is a non-adjusting even and will be disclosed as a note.
Thank you so much. Your endeavours are helping so many people. May God helo you on your way!
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