Legal Judgment Impact on Financial Statements – Adjusting vs Non-Adjusting Events

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By Taxmann
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Last Updated on 25 November, 2024

This document delves into the recognition and treatment of legal judgement issued after the reporting period, but before approval of the financial statements. It covers the guidelines outlined in AS-4 and Ind AS 10, focusing on whether the event will be adjusting event or non- adjusting in accordance with the relevant accounting standards.

The case study explains the recognition of provision and contingent asset at the end of reporting period, because of the events that occurs after the reporting period but before approval of the financial statements, under AS and Ind AS framework. It also provides insights into the necessary journal entries to ensure accurate financial reporting, ensuring that businesses adhere to applicable accounting standards while reflecting their true financial performance.

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Author: Taxmann

The statutory material is obtained only from the authorized and reliable sources
All the latest developments in the judicial and legislative fields are covered
Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
Every content published by Taxmann is complete, accurate and lucid
All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
The golden rules of grammar, style and consistency are thoroughly followed
Font and size that's easy to read and remain consistent across all imprint and digital publications are applied

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Legal Judgment Impact on Financial Statements – Adjusting vs Non-Adjusting Events

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