Intex Company Limited theft of cash of 500000 by the cashier in January 2007 was detected only in May 2007 the accounts of Company were not yet approved by the board of director of the company whether the theft of cash has to be adjusted in the accounts of company for the year ended 31st March 2007..?..
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as per me it is an event occurring after the balance sheet date and it is a non adjusting event correct me if I'm wrong
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Accounting standards
Replies (3)
Quick Summary
This is an adjusting event and provisions should be created if it becomes a legal obligation and probability of winning this fraud case is high. Company accounts can be adjusted.
How it is adjusting event ..
the theft was not detected earlier
the theft was not detected earlier
This is an existing event ie., this theft happened before reporting date And discovered before statements are approved. So anything which occurred before reporting date is also an adjusting event.
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