topic 5
Adjusting /non-adjusting post-balance date event after the reporting period in the financial statements of Company N. the financial statements of Company N are authorised for issue on 12 August 2010 and the end of the reporting period is 30 June 2010..
a) at 30 June Company N had recorded $40 000 owed by company P, which is due on 31st August. On 16 July a receiver was appointed to Company P, the receiver informed Company N that the $40,000 would be payable in full by 30 September 2010.(non-adjusting)
b)On 24 July Company N issued a corporate bond of $1,000,000, paying interesting of 5% semi-annually in arrears.(non-adjusting)
c) Company N measures its investments in listed shares as held-for-trading at fair value through profit or loss in accordance with IAS 39. as at 30 june these investments were recorded at the market value at that date, being $500,000. During the period leading up to 12 August 2010 there was a steady decline in the market values of all the shares in the portfolio and at 12 August 2010 the fair value of the investments had fallen to $400.000
.(non-adjusting)
d) Company N had reported a contingent liability at 30 june 2010 in respect of a court case where company N has defendant. at 30 June the case had not yet been heard. the case was heard in the first week of August and the judge handed down her decision, against Company N, on 11 August. the judge determined that Company N was liable to pay damages and cost totalling $3m.(adjusting)
e) As in (d) except that the damages and cost awarded against Company N were $50m and as a result Company N placed itself into voluntary liquidation(adjusting)
Adjusting events
events that provide evidence of conditions existing at the end of reporting date
non-adjusting events
those that are indicative of conditions that arose after the end of reporting date
my question is how to use concept above into the excersise indicate above., I feel confuse.
[ 本帖最后由 lisa810724 于 2010-8-24 18:15 编辑 ] |
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