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Example: disclosure in financial statements 

Below is an example of how a material non-adjusting event may be disclosed in the financial 

statements for a company with a year end of 31 December 20X8.   

Note X: Events after the reporting period 

On 22 January 20X9, there was a fire at the company's warehouse. As a result, inventories 

costing a total of $250,000 were destroyed. These inventories are included in assets at the 

reporting date. 

(e) 

Inventory (Chapter 7) 

 

The financial statements should disclose the following. 

(i) 

Accounting policies adopted in measuring inventories, including the cost formula used 

(ii) 

Total carrying amount of inventories and the carrying amount in classifications appropriate 

to the entity 

(iii) 

Carrying amount of inventories carried at net realisable value (NRV). 

(IAS 2, para. 36) 

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CHAPTER 20  

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  PREPARATION OF FINANCIAL STATEMENTS FOR COMPANIES