Basic Accounting Knowledge: After Balance Sheet Events
The balance sheet date refers to the balance sheet date to the financial report. Approval Report any favorable or unfavorable events occurring between days. It includes the adjustment items after the balance sheet date and the non adjustment items after the balance sheet date.
The date of approval of a financial report is the date when the board or similar institution approves the financial report.
The period covered by the balance sheet date is between the balance sheet date and the date of approval of the financial report.
A board or similar institution approves the occurrence of assets and assets between the date of publication of the financial report and the actual date of promulgation.
Liabilities
If the relevant items of future events affect the date of promulgation of the financial report, the date for the issuance of the financial report shall be re approved by the board of directors or similar organizations.
Under normal circumstances, business accounting should be based on continuous operation. foreign The financial reports provided should also be compiled on the basis of continuous operation. If the balance sheet date indicates that the continuous operation is no longer applicable, the enterprise shall not prepare financial reports on the basis of continuous operation.
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