Which of the following statements are / is true? – Events after Balance Sheet are?
AAll changes after Balance Sheet date before its approval
BThe events after Balance Sheet date but before its approval by the board
CAll the significant events after the Balance Sheet date
DThe events after Balance Sheet date but before submitting it to the Registrar of Companies
Correct answer
B. The events after Balance Sheet date but before its approval by the board
Explanation
Events occurring after the Balance Sheet date are those significant events, both favorable and unfavorable, that occur between the Balance Sheet date and the date on which the financial statements are approved by the Board of Directors in the case of a company, and by the corresponding approving authority in the case of any other entity.