Question

A fire destroyed a warehouse on 15 April, after year-end 31 March but before statements were authorised. Insurance claim will cover most losses. Should this be adjusted in the 31 March accounts?

A Adjust as it provides evidence of condition at year-end.
B Do not adjust; disclose as material non-adjusting event.
C Recognise insurance proceeds as receivable in March accounts.
D No disclosure needed since insured.
E Adjust only if material to users’ decisions.
Practice Next

Hey! Ask a query