AS 24 & AS 4 related query

Sir, here in the book it says that if an initial disclosure event (as per AS 24) occurs between the balance sheet date and before approval of financial statements by the board of directors we need to disclose as per requirement of a AS 4 (see attached, please). But as per AS 4, their needs to exist a condition as on the balance sheet date to be called "adjusting event" and therefore make adjustments, right? Let me be more clear with this example If say, BoD of A Ltd announced and approved on 3rd May that they are going to discontinue a part of their business, and say FS is approved on 8th Aug and year end is 31st March (as usual). There was no condition existing as on 31st March indicating that the management would discontinue a part of its business operation.



Kumarjit Dey

Kumarjit Dey

CA Inter


06-Nov-20 16:55


Answers (2)

Best Answer

It has to be disclosed if required under conditions of AS-4. In your example we need to check if the discontinuance is material or not. Most of the cases such events are anyways disclosed in management's report.

Suraj Lakhotia

Suraj Lakhotia


06-Nov-20 17:14

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