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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).
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