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EVENTS AFTER THE BALANCE SHEET DATE Key Definitions Event after the balance sheet date An event, which could be favorable or unfavorable, that occurs between the balance sheet date and the date that the financial statements are authorized for issue. Ad!"stin# event An event after the balance sheet date that provides further evidence of conditions that existed at the balance sheet, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. Non$ad!"stin# event An event after the balance sheet date that is indicative of a condition that arose after the balance sheet date. Acco"ntin#

Adjust financial statements for adjusting events events after the balance sheet date that provide further evidence of conditions that existed at the balance sheet, including events that indicate that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. Do not adjust for non-adjusting events events or conditions that arose after the balance sheet date. If an entit declares dividends after the balance sheet date, the entit shall not recognize those dividends as a liabilit at the balance sheet date. !hat is a non-adjusting event.

%oin# Concern &ss"es Arisin# After Balance Sheet Date An entit shall not prepare its financial statements on a going concern basis if management determines after the balance sheet date either that it intends to li"uidate the entit or to cease trading, or that it has no realistic alternative but to do so. Disclos"re #on-adjusting events should be disclosed if the are of such importance that non-disclosure would affect the abilit of users to ma$e proper evaluations and decisions. !he re"uired disclosure is %a& the nature of the event and %b& an estimate of its financial effect or a statement that a reasonable estimate of the effect cannot be made. A compan should update disclosures that relate to conditions that existed at the balance sheet date to reflect an new information that it receives after the balance sheet date about those conditions. 'ompanies must disclose the date when the financial statements were authorized for issue and who gave that authorization. If the enterprise(s owners or others have the power to amend the financial statements after issuance, the enterprise must disclose that fact.

RELATED 'ART( D&SCL)S*RES )b!ective of 'AS +, !he objective of )A* +, is to ensure that an entit (s financial statements contain the disclosures necessar to draw attention to the possibilit that its financial position and profit or loss ma have been affected b the existence of related parties and b transactions and outstanding balances with such parties. Related 'arties -arties are considered to be related if one part has the abilit to control the other part or to exercise significant influence or joint control over the other part in ma$ing financial and operating decisions. A -arty is related to an entity if %a& Directl , or indirectl through one or more intermediaries, the part . %i& 'ontrols, is controlled b , or is under common control with, the entit %this includes parents, subsidiaries and fellow subsidiaries&/ %ii& 0as an interest in the entit that gives it significant influence over the entit / or %iii& 0as joint control over the entit / %b& !he part is an associate %as defined in IA* +1 Investments in Associates& of the entit / %c& !he part is a joint venture in which the entit is a venturer %d& !he part is a member of the $e management personnel of the entit or its parent/ %e& !he part is a close .e.ber of the fa.ily of any individ"al referred to in %a& or %d&. !he ma include a. !he individual2s domestic partner and children b. 'hildren of the individual2s domestic partner/ and c. Dependants of the individual or the individual2s domestic partner %f& !he part is an entit that is controlled, jointl controlled or significantl influenced b or for which significant voting power in such entit resides with, directl or indirectl , an individual referred to in %d& or %e&/ or %g& !he part is a post-emplo ment benefit plan for the benefit of emplo ees of the entit , or of an entit that is a related part of the entit . The follo/in# are not necessarily related -arties

!wo enterprises simpl because the have a director or $e manager in common/ !wo venturers who share joint control over a joint venture/ -roviders of finance, trade unions, public utilities, government departments and agencies in the course of their normal dealings with an enterprise/ and A single customer, supplier, franchiser, distributor, or general agent with whom an enterprise transacts a significant volume of business merel b virtue of the resulting economic dependence.

Related 'arty Transactions - Is a transfer of resources, services, or obligations between related parties, regardless of whether a price is charged. Disclos"re Relationshi-s bet/een -arents and s"bsidiaries $ 3egardless of whether there have been transactions between a parent and a subsidiar , an entit must disclose the name of its parent and, if different, the ultimate controlling part . If neither the entit (s parent nor the ultimate controlling part produces financial statements available for public use, the name of the next most senior parent that does so must also be disclosed. 0ana#e.ent Co.-ensation $ Disclose $e management personnel compensation in total and for each of the following categories.


*hort-term emplo ee benefits/ -ost-emplo ment benefits/ 4ther long-term benefits/ !ermination benefits/ and 5"uit compensation benefits.

6e management personnel are those persons having authorit and responsibilit for planning, directing, and controlling the activities of the entit , directl or indirectl , including all directors %whether executive or otherwise&. Related -arty transactions $ If there have been transactions between related parties, disclose the nature of the related part relationship as well as information about the transactions and outstanding balances necessar for an understanding of the potential effect of the relationship on the financial statements. !hese disclosures would be made separatel for each categor of related parties and would include.

!he amount of the transactions. !he amount of outstanding balances, including terms and conditions and guarantees. -rovisions for doubtful debts related to the amount of outstanding balances. 5xpense recognized during the period in respect of bad or doubtful debts due from related parties.

E1a.-les of the Kinds of Transactions that Are Disclosed &f They Are /ith a Related 'arty

-urchases or sales of goods. -urchases or sales of propert and other assets. 3endering or receiving of services. 7eases. !ransfers of research and development. !ransfers under license agreements. !ransfers under finance arrangements %including loans and e"uit contributions in cash or in $ind&. -rovision of guarantees or collateral. *ettlement of liabilities on behalf of the entit or b the entit on behalf of another part

A statement that related part transactions were made on terms e"uivalent to those that prevail in arm(s length transactions should be made onl if such terms can be substantiated.

$ $ END $ $