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a/c period end on 31 dec,2008…..statements got finalized on 31 march 2009
1. there is inventory valued at 5000 at 31 dec,2008
an event happened on 1 feb,2009, the goods got damaged a bit and its NRV is 3000 now
will it be adjustment event or non-adjustment. I think its non-adjustment cause till 31 Dec goods were not damaged2. what if value of land fell after reporting date, is it non-adjustment event
3. goods send to customer on sale or return basis on 31 dec,2008
we got confirmation of sales on 5th jan,2009, so the sales will be recorded for 2008 yr period in which case it will be adjusting entry or for 2009 period in which it will be non-adjustment entry4. customer owing us money died on 1 Feb 2009 before financial statement got finalized, in this case
is it non-adjustment or adjustment event.1. It is a non-adjusting event and if material (which is obviously unlikely in this case) it will be disclosed by way of a note.
2. It is a non-adjusting event.
3. The sale is only recorded when the customer confirms they are buying the goods.
4. It is an adjusting event.
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