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.
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.
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
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Consolidated financials
- Putting a heading on received mail
- TDS on TRUST
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Section 50-fixed asset-->building ceases to exist
- Regarding Applicability of Tax Audit u/s 44AB
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
