Nithish Kumar

CA Inter

★ 310

02-Aug-20 13:16

As per AS 4 - The events occuring after balance sheet date but prior to Date of approval of FINANCIAL STATEMENTS by BOD, if they r adjusting events then they can be recorded in the FS as on Balance Sheet date. So the cut off date is the date on which FS are approved by BOD.

Swathi Krishna

CA Inter

★ 7K+

02-Aug-20 14:13

But by periodicity concept, it is the accounting period rite

Nithish Kumar

CA Inter

★ 310

02-Aug-20 14:21

No the accounting period ends as on 31.03.20xx. For adjusting events the conditions already exists on the balance sheet date. The events occuring after balance sheet date is just confirmatory in nature.so as to comply with the matching concept(as there were conditions for such event to be occurred as on Balance Sheet date) we adopt AS-4.

Swathi Krishna

CA Inter

★ 7K+

02-Aug-20 14:37

K