if at the year end liquidity position is poor and company is close to breach of loan covenants, if breaches does happen after year end before the issue of financial report and which result in considerable risk of not continuing as a going concern, will it be a adjusting or non adjusting event after balance sheet date?
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Lizzer question 56-part a ii
5y ago#1A breach of covenant after the balance sheet date would be a non-adjusting event.
Remember that non-adjusting events must be disclosed unless the going concern concept no longer applies in which case the financial statements must be adjusted
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