OpenTuition.com Free resources for ACCA and CIMA students

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

IAS 10

Home › Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › IAS 10

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 21, 2020 at 6:19 am
    IAS 10 2
    Sourav9271
    Participant

    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?

    June 21, 2020 at 9:12 am
    IAS 10 3
    John Moffat
    Keymaster

    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).

    June 21, 2020 at 9:45 am
    IAS 10 2
    Sourav9271
    Participant

    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.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.