Event affecting Going concern concept
This query is : Resolved
07 October 2008
hi
i want know whether the Event affecting Going concern concept is an adjusting event or non adjusting event.
i want know whether the Event affecting Going concern concept is an adjusting event or non adjusting event.
CA. AMIT AGARWAL
(Expert)
08 October 2008
Hi rahul,
As per AS-4 "Contingencies & Events occuring after Balance Sheet date", an event is said to be adjusting if the contingency existed on the balance sheet date. No matter whether the contingency affect the going concern or not.
However where any event has occured which changes our fundamental assumptions of Going concern the accounts should be prepared on liquidation basis and not on going concern basis. e.g. Fixed Assets to be depreciated over the remaining life of the business & etc.
As per AS-4 "Contingencies & Events occuring after Balance Sheet date", an event is said to be adjusting if the contingency existed on the balance sheet date. No matter whether the contingency affect the going concern or not.
However where any event has occured which changes our fundamental assumptions of Going concern the accounts should be prepared on liquidation basis and not on going concern basis. e.g. Fixed Assets to be depreciated over the remaining life of the business & etc.
CA. AMIT AGARWAL
(Expert)
11 October 2008
1
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- Query on effect of registration of property
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Additional trade name
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
