01 Exception to rule: Events indicating going concern assumption inappropriate: As per paragraph 13 of the standard, an event occurring after the balance sheet date shall be an adjusting event even if it does not reflect any condition existing on the balance sheet date, if the event is such as to indicate that the fundamental accounting assumption of going concern is no longer appropriate Suppose a fire occurred in the factory and office premises of an enterprise after 31/03/13 but before approval of financial statement of 2012-13. The loss on fire is of such a magnitude that it is not reasonable to expect the enterprise to start operations again. Since the fire occurred after 31/03/13, the loss on fire is not a result of any condition existing on 31/03/13. Yet, the loss should be recognised in the statement of profit and loss for 2012-13 and the assets lost should be written off from the balance sheet dated 31/03/13 Illustration 1 In X Co. Ltd., theft of cash of 25 lakhs by the cashier in January, 2013 was detected only in May, 2013. The accounts of the company were not yet approved by the Board of Directors of the company Whether the theft of cash has to be adjusted in the accounts of the company for the year ended 31.3.2013. Decide