a Introduction

SSAP 17 deals with post balance sheet events. The standard includes the following terms:

1. Post balance sheet events are those events, both favourable and unfavourable, which occur between the balance sheet date and the date on which the financial statements are approved by the board of directors.

2. Adjusting events are post balance sheet events which provide additional evidence of conditions existing at the balance sheet date. They include events which because of statutory or conventional requirements are reflected in financial statements.

3. Non-adjusting events are post balance sheet events which concern conditions, which did not exist at the balance sheet date.

SSAP 17 is superseded by FRS 21 for accounts periods beginning on or after 1 January 2005.

b Adjusting Events

These include two main categories:

1. Events which provide additional evidence of conditions existing at the balance sheet date e.g. post balance sheet proceeds of obsolete and slow-moving stocks would help substantiate year-end stock provisions.

2. Events which because of statutory of conventional requirements are reflected in financial statements. An example is dividends receivable from associated companies.

The financial effects of adjusting events should be reflected in the financial statements for the year under review.

In addition to the above, SSAP 17 requires adjustment of year-end amounts where a post balance sheet event indicates that the application of the going concern concept is no appropriate.