Events after reporting period Flashcards
1
Q
If not material
A
Do nothing
2
Q
If material
A
Decide whether adjusting or not adjusting
3
Q
Adjusting
A
If the issue existed at y/e must adjust
ex an asset is determined to be impaired
4
Q
Non Adjusting
A
A material event that is not related to a condition at year end.
Disclose the event since it is material:
- Nature of event
- Estimate of its financial effect
ex fire, major business combination, sell an asset
5
Q
Going concern
A
Must restate current period f/s if turn into a liquidation state
