AS- 4: Contingencies and Events Occurring after Balance Sheet

AS- 4: Contingencies and Events Occurring after Balance Sheet

Applicability: w.e.f 1.4.95 for all enterprise.
Contingencies:
1. Contingencies is a condition or situation, the ultimate outcome of which (gain or loss) will be known or determined only on occurrence (or non-occurrence) of some uncertain future event. The outcome can be favourable or unfavourable.
2. Recognition of possible favourable outcomes, called Contingent Assets, imply anticipation of gains.
3. Contingent loss should be provided for by a charge in P & L A/c, if it is probable that future events will confirm that an asset has been impaired or a liability has been incurred as at the balance sheet date, and a reasonable estimate of the amount of the loss can be made (otherwise disclosure should be made).
Events occurring after the balance sheet date:
(i) These are significant events (both favourable and unfavourable) that occur between the balance sheet date and the date on which the financial statements are approved.
(ii) There are 2 types of events:-
a Those which provide further evidence of conditions that existed at the balance sheet date;
b Those which are indicative of conditions that arose subsequent to the balance sheet date.
The events occurring after the balance sheets can be reported by
- making appropriate adjustment in the financial statements
- through report of the approving authority, (e.g. Directors’ Report in case of companies)
Event occurring after balance sheet date require adjustment in accounts.
Disclosure:
i Regarding contingencies:
a The nature of the contingency;
b The uncertainties which may affect the future outcome;
c An estimate of the financial effect, or a statement that such an estimate cannot be made.
ii Regarding Events occurring after the Balance Sheet Date:
a The nature of the event;
b An estimate of the financial effect (or the reasons if such estimate cannot be made).

Тэги:

#AS-4_Contingencies_and_Events_Occurring_after_Balance_Sheet #Introduction_to_Indian_Accounting_Standards #Basics_of_Indian_Accounting_Standards_|_Convergence_from_IFRS_|_Roadmap_&_Applicability_of_Ind_AS #NFRA_|_GAAP_|_AS_|_IND_AS_|_IFRS #Indian_Accounting_Standard_&_IFRS #IND_AS_|_IFRS_International_financial_reporting_standards_|_IFRS #accounting_standard_|_AS #Indian_Accounting_Standards_|_Ind_AS #Meaning_and_Need_of_GENERALLY_ACCEPTED_ACCOUNTING_PRINCIPLES_(GAAP)

Скачать видео