AS-4

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aditya kaushal (Querist)
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10 August 2010 In AS-4 events occuring after the balance sheet date is adjusted if it is adjusting event . Satutory obligation is mandatory to adjust in financial statement.eg Dividend.payment of fee of registar of companies is also adjustable in finacial statement ?

CA SMR

CA SMR (Expert)
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10 August 2010 Dividend if declared after the date of financial statements but before the latter gets approved is considered as event after balance sheet date and must be adjusted as per AS 4.But payment of fees to registrar of Co.'s can be provided for in the FS as per accrual basis of accounting and not as per AS 4 which states that " Assets and liabilities should be adjusted for events occurring after the balance sheet date that provide additional evidence to assist the estimation of amounts relating to conditions existing at the balance sheet date or that indicate that the fundamental accounting assumption of going concern (i.e., the continuance of existence or substratum of the enterprise) is not appropriate."
However more opinion is solicited.