11-21-2003, 12:33 AM
Hi Paki,
I was talking about the adjusting events after the balance sheet date, as per IAS 10, the receipt of information after the balcne sheet date indicating that an asset was impaired at the b/s date, or that the amount of previously recognised impairment loss for that asset needs to be ajusted,
e.g. the sale of inventories after the balance sheet date may give evidence about their NRV at the balance sheet,
in view of above, if u have got the evidence that prices are increasing day by day of your inventory then you have to adjust the effect of same in the financial statements,
I m not disagreeing you on any matter, but i m trying to explain my understanding on that,
what do u think, it will be more useful for the users of the financial statements if the company has accounted for events after the balance sheet date.
as you know, if the company shows profits for the year ending 30 june, 2003, and this profit is announced by the company may not increase the share prices if there is evidence that the company is going to suffer the loss in near future due the fall in prices of the company's product.
SMR
I was talking about the adjusting events after the balance sheet date, as per IAS 10, the receipt of information after the balcne sheet date indicating that an asset was impaired at the b/s date, or that the amount of previously recognised impairment loss for that asset needs to be ajusted,
e.g. the sale of inventories after the balance sheet date may give evidence about their NRV at the balance sheet,
in view of above, if u have got the evidence that prices are increasing day by day of your inventory then you have to adjust the effect of same in the financial statements,
I m not disagreeing you on any matter, but i m trying to explain my understanding on that,
what do u think, it will be more useful for the users of the financial statements if the company has accounted for events after the balance sheet date.
as you know, if the company shows profits for the year ending 30 june, 2003, and this profit is announced by the company may not increase the share prices if there is evidence that the company is going to suffer the loss in near future due the fall in prices of the company's product.
SMR
