event after reporting

This topic has 4 replies, 3 voices, and was last updated 10 years ago by John Moffat.

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January 20, 2016 at 8:55 am #296536
Akinlolu
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reduction in investment should be adjusted for since it will affect sofp before reporting date. can you pls explain this ad you said it is not adjusted for?
January 20, 2016 at 4:04 pm #296713
John Moffat
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If there is evidence that the value was lower at the reporting date, then it should be adjusted.

If the lower value occurred after the reporting date, then it is non-adjusting and (if material) should be disclosed by note.

That is what I say in the lecture 🙂
January 25, 2016 at 11:58 pm #297903
Michelle
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Hi John

Just a quick question. The lecture on Adjustments to Profit and Suspense Accounts (part c), question 4. I was just wanted to ask why this wouldn’t fully be adjusted for in the statements for y/e October 2006 since there was a sale made a short time after.
January 25, 2016 at 11:58 pm #297904
Michelle
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Thanks in advance! 🙂
January 26, 2016 at 7:49 am #297932
John Moffat
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The fact it was a short time after is not relevant – no sale had been made as at 31 October and therefore no sale should have been recorded.
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