As4 Contingencies Events occurring after the Bls date
FY25 26
FY24 25 31 07 2025
Eg
0104 24 3,1ImmanuelBOD Boardof directors
Financial statementsof
FY24 25 signed
IAST
The whole discussion in this standard is whether the events occurring after the
Bls date till date ofapproval byBOD should be decoded in Previous Fin Year or in
next F y
I Contingency
It is a condition as situation ultimate outcome of which will bedetermined by
occurrence of one ad mode uncertain future events
All contingencies have been withdrawn from this As a will be discussed in AS29
my contingencies related to Trade receivables i e Provfor Bad 4 doubtful Debts will
continue to be covered under AS 4
I Events Occurring After the Bls Date
Bothfavourable unfavourable
Definition These are significantEvents J That occur between
The BIS Date 4 Date on which the
Financialstatements are approvedbyBOD
5824 25 3107 25 160825
Eg I
010424
murmur Bapprove
31 03 25
shareholders
Asg approve
010425 to
31 07 25
Events occurring After
BIS Date
AdjustingEvent
Types of Events
Non Adjusting Event
Adjusting Events
These are events that provide furtherevidence of conditions thatexistedon Blsdate
Eg
FY 24 25 1505 25
1 I 1
14 0225 3103 25 Devanglastthe 31 07 25
case
Debtor Devang
Became
the for
provision
Baddebts 5 Bankrupt Insolvent
100
KyaiskeInsolvent hone ki Koiindication
thiBeforeYearEnd
YES
Adjusting Event
Treatment of
AdjEvent Such event will be adjusted in Fin statements of Previous Year
Examples ofAdjustingEvent
Theft fraud which happened in Prey Year Butdetected in Nextyear
Debtors on whom case was done before year I declared insolventafter year end
sale Purchase of PPE done beforeYearend Butdocumentation doneafterYearend
ofInventory gone downafter yearend for which conditions existed
value BeforeYear
end
Non Adjusting Event
No Evidence of such events existed on the Blsdate
0104 24 310325 1504 25
E 1 I
My 3107 25
Firelagg Approval
gay
loss byfire
Nn Adjusting Event
Dont Adjust in Prey Year
Treatment of NonAdjustingEvent
Such Events wont be adjusted in Previous Year But can be disclosed in the reportof
Approving Authority if the event is material significant
Examples of NonAdj Event
Fire Earthquake Tsunami that occurred after yearend
Market value of Investment Inventory gone down afteryearend forwhich no
condition existed on Bls date
Cheques received from customer after Year end
ExtraExample
3107 25 1508 25
FY24 25
itsApprove I
010424 Debtor 310325 Shivam
Shivam byBOD lostthe
case
else
Adjusting
NonAdjusting
ofscopeof
AS4
FY24525 150525
I 1 I 1
010424 Debtor 3103 25 Shivam 31 07 25
won the
Shiyam forBaddebts
Prov case
Blood
case 50 Fairourable Approval
event
are favourage
event also considered
YESO
3
specialcases
Dividenddeclared after Blsdate
FY24 25 150525
I
010424 310325 Codeclared
dividend
NonAdjEvent No condition liab to
declare the dividend
Disclas in Notes toAc's existed on Blsdate
of Fy24 25
a significant Non AdjEvents are disclosed in report ofApproving Authority
But Dividend declaredafter Yr end is disclosed in Notes to Alc's
GoingConcern Assumption
Non going concern assumption are to
Events that affect the be treated as
Adj
AdjEvents and the Financialstatements of Previous year will be prepared on
liquidation Realisation Basis instead of Accrual Basis
Eg I 1 I
010424 3103 25 150425 3107 25
Fire Non
7725
BIS
AdjEvent
PIL AccrualBasis Goingconcernaffected
Papproval
liquidation
Realisationn Basis Treat like padj event
Illus 2
Asper AS 4 Contingencies Events occurring after Blsdate if any eventoccurs
afterBIS condition for which did not exist then such events are treated as
Non Adjusting Events
Non Previous But if these events are material
Adjevents do not require adjustment in
they need to be disclosed in the report of approving authority
In this case since the loss of 30lakhs seems material it will bedisclosed
in the report of approving authority conclusion
however
according toAS4 if the earthquakehas causedmajordestruction then
fundamental accounting assumption of going concern needs to beevaluated
If going concern is not valid then Financial statements of previous year needsto
beadjusted 4 will be prepared on liquidation realisationbasis
f going concern is valid then no need to adjustthe financials but it can be
disclosed in the report of approving authority
Summary of Answer Presentation
AS4 Name
define Events afterthe Blsdate
givethe definition
Adj Event which is relevant
Non Adj Event for that ques
onclusion In 2 3 line that as per AS 4
Extra Example FY 24 25 310325
I
n'egotiations Transaction
nottreated as
condition existing
Ifin Adj
FY24 25 310325
I 1
Transaction
Terms
conditions
finalised 91dgEvent
