State the adjusting and non-adjusting events for the year ending 31st March 2025 with reasons including disclosure requirement.
CA Final · Integrated Business Solutions (Multidisciplinary Case Study) · MTP · May 2026
State the adjusting and non-adjusting events for the year ending 31st March 2025 with reasons including disclosure requirement.
Suggested Answer and Working Notes:
Adjusting vs non-adjusting events 20 March 2025: Explosion destroying part of plant. The Insurance claim was confirmed on 20th April which is after the reporting date but as it confirms the recoverability, it will be an adjusting event and will be required to be accounted for. 25 Apr 2025: Government subsidy announced (effective 01-Jul-2025), Non-adjusting. Announcement after reporting date and will have no effect on 31st March 2025.
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