EVent after reporting date — OpenTuition Forums

ALAlex Lim6y ago

Hi sir, May I ask 2mths aftet the ye. A subsidiary company in a different country has been nationalised by the new military regime, with no compensation being paid. The net asset of the subsidiary are approximately 10% of the net asset of the group. May I knw is it non-adjusting event? Should we disclose in notes to fs? 2. A company sell its former head office building for 2.3 million. 3 mths aftet ye. At the year end, the buidling was unoccupied and had a carrying value of 2.8 million This is also a non-adjusting event right? But I am confused it should we disclose it? Because as to what I knw only the transaction for material need to be disclose if it is non-adjusting event, but I am uncertain whether the above 2 cases are material or not? How about factory burned after ye before authorized for issue? Thanks sir

P2-D2Tutor6y ago#1

Hi, 1. It would be a non-adjusting event as the condition did not exist at the reporting date. It would be adjusting if it impacted the going concern principle, which is likely if it has been nationalised. 2. It is non-adjusting as the sale took place after the reporting date, but it is a material transaction so should be disclosed in the notes to the accounts. 3. The fire is a non-adjusting event as the fire took place after the reporting date. Thanks

ALAlex Lim6y ago#2

Is that means only the second question needs to disclose by notes? 1 and 3 no need? Thanks

P2-D2Tutor6y ago#3

If the events were material then they would be disclosed, so 1 and 3 could technically be disclosed. Thanks