Due to Floods in Dec 2023 , Stocks have been damaged which are material in value and it could not be quantified as at 31.03.2024 .These stocks are covered under insurance policy . In July 2023 , Damaged stocks could be quantified and insurance claim is receivable during August.
Can we apply AS 4 & treat it as an Adjusting Event & Adjust the Assets & Liabilities as follows 1. Add insurance claim receivable and decrease from stocks 2. Balance loss to write off in P/L account 3 can we provide disclosure accordingly
CAclubindia
