Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 17 

KAPLAN PUBLISHING

309 

Examples of adjusting events 

•

The settlement after the reporting date of a court case which

confirms a year end obligation.

•

The receipt of information after the reporting date that indicates that

an asset was impaired at the reporting date.

•

The bankruptcy of a customer after the reporting date that confirms

that a year-end debt is irrecoverable.

•

The sale of inventories after the reporting period at a price lower

than cost.

•

The determination after the reporting date of the cost of assets

purchased or proceeds from assets sold before the reporting date.

•

The discovery of fraud or errors showing that the financial

statements are incorrect.