Hi,
Just wondering if you guys could help me decide whether a non-adjusting post balance sheet disclosure is required in the notes to the accounts in respect of a loan which was due for renewal 5 months after the year end. The loan later was renewed by the bank.
would appreciate any comments on the above.
Thanks
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Probably not
It would not require disclosure in itself, but if you have potentially insolvent accounts, you should mention in the accounting policies that the accounts have been prepared on a going concern basis on the grounds that the bank would continue to provided sufficient finance by renewing the loan facility and you might choose to say that it did indeed do that after the accounting date.