adjusting events definition

adjusting events

Material events that occur between the date of preparation of financial statements and the date of their approval by the management. Such events must be reflected in the financial statements of a firm, to comply with the requirement of giving a 'true and fair view' of its financial position. A non-material (non adjusting) but significant event may be disclosed in the notes (footnotes) to the financial statements. Also called post balance sheet events.

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