CERTYNEX IFRS ACADEMY

A customer of Neulvot, solvent and up to date with its payments at 31 December, sees its only plant destroyed by fire on 15 January and files for bankruptcy in February. How should the receivable be treated in Neulvot's accounts?

Partial adjustment, for half the receivable, as a precaution.

Adjustment, because any customer bankruptcy before the accounts are authorised reveals an impairment existing at the reporting date.

No adjustment: the customer's condition arose after the reporting date; disclosure may be required.

No treatment: the event concerns the customer, not the entity, and remains out of scope.