Accounting Standard (AS) 4 addresses contingencies and events occurring after the balance sheet date, outlining their types, treatments, and required disclosures. It differentiates between adjusting events, which provide evidence of conditions existing at the balance sheet date, and non-adjusting events, which arise after that date. Disclosure requirements include the nature of the event and its financial effects, with exceptions when a going concern assumption is questioned.

1. Accounting
Standard (AS) 4
Contingencies and Events Occurring after the Balance Sheet Date

2. AGENDA
 Contingencies
 Events occurring after balance sheet
date
 Types of Events
 Treatment of Adjusting and Non
Adjusting Events
 Disclosure
 Exception of Rule

3. CONTINGENCIES
Contingency is a condition or situation, the
ultimate outcome of which, gain or loss, will
be known or determined only on the
occurrence, or non- occurrence, of one or
more uncertain future events.

4. EVENTS OCCURRING AFTER THE BALANCE
SHEET DATE
Are those significant events,
Both favorable and unfavorable,
That occur between the balance sheet date and the
date on which the financial statements are approved
By the Board of Directors in the case of a company, and,
by the corresponding approving authority in the case of
any other entity.

5. EXAMPLE
BS date
FY 2015-16 FY2016-17
1-4-2015 31-3-2017
31-3-2016
31-8-2016
DOA

6. TYPES OF EVENTS
Adjusting Events
Those Which Provide Further
Evidence Of Conditions That
Existed At The Balance Sheet
Date
Non Adjusting Events
Those Which Are Indicative
Of Conditions That Arose
Subsequent To The Balance
Sheet Date

7. Treatment of Adjusting and Non
Adjusting Events
Evidence of such condition been
existed at the Balance Sheet date
Event occuring after the Balance Sheet
date
Adjusting event Non-adjusting event
Adjustment to assets & liabilities is
required
Adjustment to assets & liabilities is not
required
Disclosure in the financial statements is
required
Disclosure in the report of the
approving authority is required
Events occurring after balance sheet date

8. Disclosure
Disclosure of events occurring after the balance sheet
date requires the following information should be
provided:
(a) The nature of the event;
(b) An estimate of the financial effect, or a statement that
such an estimate cannot be made.

9. Exception of Rule
As per AS 4 (Revised), an event occurring after the
balance sheet date should be an adjusting event even if
it does not reflect any condition existing on the balance
sheet date, if the event is such as to indicate that the
fundamental accounting assumption of going concern is
no longer appropriate.

10. Thank You
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