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

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.
2008

Accounting
Period

31 Dec.
2008

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.
2.
3.
4.

Historical cost
Current cost
Realizable value
Present value

IAS-37
Provision, Contingent liabilities & Contingent Assets


Provisions
Reduction in assets
1.
2.

Provision for doubtful debts
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.