Hello,
Just wondering whether I should enter any post-balance sheet events into the annual return for my limited company.
I use the FRSSE guide, which mentions 'non-adjusting events'. What does this mean?
Can you give me some examples of things that you would put in the 'post balance sheet events' section?
Thanks
=> Non-adjusting events mean that you do not need to adjust the balance sheet or
the Income Statement. In other words, the non-adjusting events do not affect
the condition of the financial statement.
For example, you bought a property at $100,000 which intended to hold as
long term investment. Now, the property's value is declined and is only worth
$700,000. You are not required to make impairment as you've no intention to
sell it in the comming months. It is the non-adjusting event because it only serves as
market information, however it should be disclosed as "note to the account" in
the financial statments.
If the company intend to sell this property very shortly after the balance sheet date.
The financial statments should be adjusted (i.e. to make impairment for the
property). It is the adjusting event because it would affect the condition
of the financial statements. It serves as the "additional information" for the financial
statements.
