Event affecting Going concern concept

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rahul (Querist)
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07 October 2008 hi
i want know whether the Event affecting Going concern concept is an adjusting event or non adjusting event.

CA. AMIT AGARWAL

CA. AMIT AGARWAL (Expert)
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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.

Jitender

Jitender (Expert)
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08 October 2008 it is an adjusting event.

CA. AMIT AGARWAL

CA. AMIT AGARWAL (Expert)
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11 October 2008 1

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