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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Non adjusting event
Dear Tutor,
in question 4 of the September / Decemeber 2015 exam Tang enters into a contract on 1 December 2014 to construct a printing machine on a customer’s premises. On 4 December 2015 the contract was modified but it was still a single performance obligation.
Could you please explain why this is a non-adjusting event? I tought this would be an adjusting event, because it relates to the contract from the previous period.
Thank you.
Hi,
It is because the condition that caused the amendment was not in existence at the reporting date, so although the contract was in place the amendment wasn’t and hence a non-adjusting event.
Thanks