11-27-2003, 07:12 PM
arey chanda
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>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,
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
you are right here, because if AFTER the BS date if u know that ON the BS date the situation was actually like this, then you will adjust it.but that the to the good of the
now compare your above statement with the one below
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>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,
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DAY BY DAY increase does not mean that a particular thing existed AT the BS date???? so at most what it can be is a non adjusting event needing disclosure.
and I wont change the disclosure of things that existed on the BS date just to let the users anticipate the share prices??? like above, I can at most give an additional disclosure.
To further illustrate
if on June 30, the NRV of stock is Rs. 100 per unit, and July 01, it is Rs. 5 then BS will show Rs. 100 and that fact that prices have deteriorated may be additionaly disclosed.
Further
you have a plant that is only used by you in the market and at June 30 it was recorded at Rs. 1000, on Aug 15 you sell the plant for Rs. 50, now this might need impairment adjustment at BS date, cause there was no active market for the plant so u didnt have the evidence as to its realizable value (and you thougth that its value in use was sufficient) but now that its been disposed off you have the evidence that it was impaired on June 30.that the
Me rulz
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>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,
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
you are right here, because if AFTER the BS date if u know that ON the BS date the situation was actually like this, then you will adjust it.but that the to the good of the
now compare your above statement with the one below
<BLOCKQUOTE id=quote><font size=1 face="Verdana, Tahoma, Arial" id=quote>quote<hr height=1 noshade id=quote>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,
<hr height=1 noshade id=quote></BLOCKQUOTE id=quote></font id=quote><font face="Verdana, Tahoma, Arial" size=2 id=quote>
DAY BY DAY increase does not mean that a particular thing existed AT the BS date???? so at most what it can be is a non adjusting event needing disclosure.
and I wont change the disclosure of things that existed on the BS date just to let the users anticipate the share prices??? like above, I can at most give an additional disclosure.
To further illustrate
if on June 30, the NRV of stock is Rs. 100 per unit, and July 01, it is Rs. 5 then BS will show Rs. 100 and that fact that prices have deteriorated may be additionaly disclosed.
Further
you have a plant that is only used by you in the market and at June 30 it was recorded at Rs. 1000, on Aug 15 you sell the plant for Rs. 50, now this might need impairment adjustment at BS date, cause there was no active market for the plant so u didnt have the evidence as to its realizable value (and you thougth that its value in use was sufficient) but now that its been disposed off you have the evidence that it was impaired on June 30.that the
Me rulz
