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Brakes had a reporting date of 30 September 20X8. The financial statements for that year were approved on 14 December 20X8 and issued on 17 January 20X9. Details of several events which occurred after the reporting date of 30 September 20X8 are as follows:
1 A fire destroyed inventory which cost $4,200 on 3 October 20X8.
2 A credit customer with an outstanding balance at the year-end was declared bankrupt on 12 December 20X8.
3 An ordinary dividend of 6c per share was declared on 1 December 20X8.
4 An inventory valued at a cost of $800 at the yearend was sold for $650 on 11 December 20X9
Which of the item above are non-adjusting events?
As per book answer only 3 is non-adjusting events.
But I think both 1 and 3 are non-adjusting events.
I am confused; please help sir.I am tempted to agree with you.
Inventory should be valued at the lower of cost and net realisable value, but since it existed at 30 September and presumably it was fine at that date and had an expected realisable value therefore of more than the cost then it should be non-adjusting.What is the difference between financial statements are authorised for issue and financial statements are actually issued. ias 10 says events until the financial statements are authorised for issue. in one question i encounter two different dates for authorised for issue and issued. i considered the events after the reporting period from year end to the date authorised for issue and my answer was right. i am convinced with the answer. but two different dates for authorised for issue and date of actual issue is confusing me. Pls kindly explain.
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