Accounting Standard (AS) 4
and Events Occurring
After the Balance Sheet Date
(This Accounting Standard includes paragraphs 10-17 set in
and paragraphs 1-9 set in plain type, which have equal authority. Paragraphs
in bold italic type indicate the main principles. This Accounting Standard
should be read in the context of the Preface to the Statements of Accounting
The following is the text of the revised Accounting Standard (AS) 4,
s and Events Occurring After the Balance Sheet
by the Council of the Institute of Chartered Accountants of India.
This revised standard comes into effect in respect of accounting periods
commencing on or after 1.4.1995 and is mandatory in nature.
It is clarified
*The Standard was originally issued in November 1982.
Pursuant to AS 29, Provisions, Contingent Liabilities and Contingent Assets,
becoming mandatory in respect of accounting periods commencing on or after 1-4-
2004, all paragraphs of this Standard that deal with contingencies (viz. paragraphs
1(a), 2, 3.1, 4 (4.1 to 4.4), 5 (5.1 to 5.6), 6, 7 (7.1 to 7.3), 9.1 (relevant portion), 9.2,
10, 11, 12 and 16) stand withdrawn except to the extent they deal with impairment of
assets not covered by other Indian Accounting Standards. For example, impairment
of receivables (commonly referred to as the provision for bad and doubtful debts),
would continue to be covered by AS 4. (See Announcement on
y of AS
4 to impairment of assets not covered by present Indian Accounting
, April 2004, pp. 1151)). This Announcement
is reproduced under the section titled
s of the Council regarding status
of various documents issued by the Institute of Chartered Accountants of
appearing at the beginning of this Compendium.
Attention is specifically drawn to paragraph 4.3 of the Preface, according to which
Accounting Standards are intended to apply only to items which are material.
Reference may be made to the section titled
s of the Council
regarding status of various documents issued by the Institute of Chartered
Accountants of India
appearing at the beginning of this Compendium for a detailed
discussion on the implications of the mandatory status of an accounting standard.