Financial Reporting
Events After the Reporting Period Explained: When a Customer Collapse in January Changes Your December Accounts
When a major customer collapses just weeks after your year end, the real question is not when they failed but whether warning signs existed before your balance sheet date. This article explains how adjusting and non-adjusting events under FRS 102 and IAS 10 determine whether you rewrite your December figures or simply disclose the risk, with a full worked example and journal entry.