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Kumar Dey

Kumar Dey

CA Inter

4K+

05-May-20 21:55

12

Another doubt/problem relating to AS 4

If there has been a cash embezzlement of Rs. 2 Lacs on 28 February and the management came to know about it on 30th April and the date of approval of FS is 31st May, as per AS 4, is such embezzlement an adjusting event or not? If it is an adjusting event, what is the "condition" exisitng on the Balance date for which is it being treated as adjusting event? Is this the condition?: Management's expectation of cash embezzlement.

Answers (3)

M. Narendra

M. Narendra

CA Inter

3K+

06-May-20 08:09

As per AS 4

Kumar Dey

Kumar Dey

CA Inter

4K+

06-May-20 08:10

M. Narendra

M. Narendra

CA Inter

3K+

06-May-20 08:09


As per AS 4

Please give a complete explanation yaar

M. Narendra

M. Narendra

CA Inter

3K+

06-May-20 08:22

Embezzlement of â?¹ 2,00,000 detected by BOD on 30 th April before the approval of FS .It is an adjusting event. For adjusting events - A condition should exist on b/s date - additional evidence to confirm such condition - such additional evidence should be MATERIAL Detection of embezzlement on 30 th April is additional evidence for such condition on B/S date and it is material. Hope you understand and sorry for keep you waiting on this