11-20-2003, 01:04 AM
thanks raza for making me go through IAS - 10; been some time.
After a casual reading (so that I still maybe mistaken and so u can still correct me) I found what I thought you referred to in this IAS - 10; its an example (one of the examples) in the earlier paras of the IAS 10 (perhaps it was 9th para). It read some thing like taht "sale price after the balance sheet date maybe indicative of the realizable values of assets, like stocks" and in which case it is going to be an adjusting event (provided change in NRV based on after balance sheet date causes any change)
but you have said that
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>the most recent price refers to the date closer to the intialling date of the financial statements. and this is covered in IAS 10 "Events after b/s date" <hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
now I cant see in this IAS how it requires us to use a price as a measure on the balance sheet date just because this price prevails on a date that is closer to the date of financial statements????
In my opinion the above referred line of IAS only implies that "in cases" it may be appropriate to estimate the selling price that prevailed on the balance sheet date on the basis of a selling price that prevailed after the balance sheet date (which must be a not so far away date in my reckoning)
so if your date of financial statement is Aug. 15 and yr. end June 30. then you wont use the price of Aug 15 to calculate the NRV at june 30, u might however use the price at July 12 for the purpose, provided its the closest and so on (it realy becomes a matter of judgement once its clear that its not a rule of thumb (or IAS) to use the price prevailing at the FS date)
thanks
Me rulz
After a casual reading (so that I still maybe mistaken and so u can still correct me) I found what I thought you referred to in this IAS - 10; its an example (one of the examples) in the earlier paras of the IAS 10 (perhaps it was 9th para). It read some thing like taht "sale price after the balance sheet date maybe indicative of the realizable values of assets, like stocks" and in which case it is going to be an adjusting event (provided change in NRV based on after balance sheet date causes any change)
but you have said that
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>the most recent price refers to the date closer to the intialling date of the financial statements. and this is covered in IAS 10 "Events after b/s date" <hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
now I cant see in this IAS how it requires us to use a price as a measure on the balance sheet date just because this price prevails on a date that is closer to the date of financial statements????
In my opinion the above referred line of IAS only implies that "in cases" it may be appropriate to estimate the selling price that prevailed on the balance sheet date on the basis of a selling price that prevailed after the balance sheet date (which must be a not so far away date in my reckoning)
so if your date of financial statement is Aug. 15 and yr. end June 30. then you wont use the price of Aug 15 to calculate the NRV at june 30, u might however use the price at July 12 for the purpose, provided its the closest and so on (it realy becomes a matter of judgement once its clear that its not a rule of thumb (or IAS) to use the price prevailing at the FS date)
thanks
Me rulz
