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After financial statements and before finalisation.A fire destroyed all the inventory on the premises with a consequence that it was unlikey that company would be able to continue as a going concern.
Sir,The answer behind the book was it is a adjustable Event.How is it a adjustable events?
Any loss by calamity is supposed to be non-adjustable.
Can you explain the underlying reason?
It would normally be non-adjustable, but the fact that the company is not now a going concern means that the accounts should be prepared on a break-up basis (i.e. what they could be sold for if the company closes down).
Does it mean that the company will shut down soon after the reporting.So since any facts can’t be disclosed in future statements so it must be disclosed in current Statements.