Question

IAS 10: Events after the Reporting Period addresses two issues: adjusting events, namely, those events that provide evidence of conditions that existed at the end of the reporting period and non-adjusting events: which are those events that are indicative of conditions that arose after the reporting period that need to be reflected in the financial statements. Amounts recognized in the financial statements are adjusted to reflect adjusting events, but only disclosures are required for material non-adjusting events. Management’s judgment is required in determining whether events that took place after the end of the reporting period are adjusting or non-adjusting events. This will be highly dependent on the reporting date and the specific facts and circumstances of each company’s operations. Coronavirus has overwhelmed the world in various ways and at various times. China was the first to announce spread of the virus in November, 2019. UK announced its first case of coronavirus in February, 2020 and Ghana announced its first case in March, 2020. While company A resides in China, company B resides in the UK and C resides in Ghana. Company A’s financial reporting period ends on 31st October each year; company B’s financial reporting period ends on 31st December, each year and company C’s financial reporting period ends on the 31st of March each year. Management of these companies may need to continually review and update the assessments up to the date the financial statements are issued given the fluid nature of the crisis and the uncertainties involved.
You are required to discuss in respect of each of the companies, the potential management conclusions of the impact of the coronavirus on end of year

Answer 1

	Company A	Company B	Company C
Year Ends	31-Oct	31-Dec	31-Mar
Country of Operation	China	Ghana	UK
Repor of Pandemic	November	february	March
Here from above scenario Accounting Concepts about Going Concern ability need to be evaluated.
Secondly, if that Satisfy can accordingly present the Financial Statements
Third, Going Concern is management decision and Dependeds upon the economy it is opeartaing
Going Concern Ability	Management Decision.	Management Decision.	Management Decision.
Other Aspects	Disclosure	Disclousre	-
Adjust the Event Adjusting event	Adjust the Event Adjusting event	Adjust the Event Adjusting event
Recommendation and Concluison	Every company has to take decision about the economy in which they are operating, Government regualtions play wvery major role in determining the Going Concern Aspects. Secondly They have to adjust material items and disclouse the non adjusting items.