ACCA FA Syllabus F. Preparing Basic Financial Statements - Reporting events - Notes ^{3 / 3}

How adjusting and non-adjusting events are reported

Financial statements should be adjusted for adjusting events. This means that the amounts in the financial statements should be changed.

Non-adjusting events do not, by definition, require an adjustment to the financial statements, but if they are of such importance that non-disclosure would affect the ability of users of the financial statements to make proper evaluations and decisions, the enterprise should disclose by note:

• the nature of the event; and

• an estimate of its financial effect, or a statement that such an estimate cannot be made.