Advanced financial accounting - Lecture 27: Events after balance-sheet IAS-10, provisions, contingent liabilities and assets IAS-37

Advanced financial accounting - Lecture 27: Events after balance-sheet IAS-10, provisions, contingent liabilities and assets IAS-37. The main topics covered in this chapter include: financial statement; draft financial statement; published financial statement; adjusting events;... Please refer to the lecture for details!

Advanced Financial

Accounting FIN-611

Mian Ahmad Farhan

Lecture-27 Events after Balance-sheet IAS-10 Provisions, Contingent Liabilities & Assets IAS-37

Financial Statement

1 Draft financial statement

2 Published financial statement

1 Jan 31 Dec

2008 2008

Accounting

Period

25 March 2009 31 Dec.2009

Events occurs after the balance sheet date

Adjusting events Non-adjusting events

Adjusting Events

Adjusting events are the events which provide the further evidence relating to the condition existing to balance sheet date

Non-adjusting Events

There are the events that are indicative of

conditions that arose after the balance sheet date

Dividend

Going Concern

Measurement Basis

1 Historical cost

2 Current cost

3 Realizable value

4 Present value

Provision, Contingent liabilities & Contingent Assets

Provisions

Reduction in assets

1 Provision for doubtful debts

2 Provision for depreciation

Increase in liabilities

1 Future Losses

Provision Provision is a liability of uncertain timing and events

Liabilities

A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result

in an outflow from the entity of resources embodying

economic benefits