Adjusting events

xuchaofanxuchaofan
in CIA.Subseq

Hi,

I am not sure about if adjusting events mean exactly all leaves in the decision tree requiring "reflect the event in the work". Are they both equivalent? If not, what are the different possibilities?

Thank you!

Comments

  • grahamgraham

    A strict interpretation of the reading implies that an adjusting event and an event that must be reflected in the work are not the same thing.

    An adjusting event can either be material or non-material. If it is material then it must be reflected. If it is not material then it does not have to be reflected.

    So all subsequent events that must be reflected are adjusting events, but the reverse is not true. Subsequent events that are adjusting events don't always have to be reflected (it depends on whether the adjusting event is material.)

  • xuchaofanxuchaofan

    @graham Thank you! That's very clear!

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