I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

 

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1.3 Events requiring adjustment 

Events that provide further evidence of conditions that existed at the reporting date should be adjusted 

for in the financial statements.  

The standard requires adjustment of assets and liabilities in certain circumstances:  

'An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after 

the reporting period.'  

(IAS 10, para. 8) 

An example of additional evidence which becomes available after the reporting date is where a customer 

goes bankrupt, thus confirming that the trade account receivable balance at the year end