10 September 2010
Adjustable events are those events (which occur after balance sheet date and before the date when the balance sheet gets approved)which materially effects the conditions that exist at the Balance Sheet date.e.g. If a customer gets insolvent in the period mentioned above which may affect trade receivable then provision for bad debt becomes necessary as on Balance Sheet date and such event qualifies as the event occurring after BS date.
11 September 2010
Agree with Sukanya.... Continuing the above the non adjustable events are those are not adjusted in the book. For Ex if fire took place on 2nd April and destroyed the major Stock than bcz the condition does not exist on 31st March so no adjustment will make in books of Accounts and only Disclosure will be made.
CAclubindia
