## AS 4: Contingencies and Events Occurring After the Balance Sheet Date
### What Does AS 4 Cover?
AS 4 deals with two areas:
1. Contingencies – mostly withdrawn; now covered under AS 29. The only contingency still under AS 4 is provision for bad and doubtful debts (trade receivables).
2. Events Occurring After the Balance Sheet Date – the primary focus of this standard.
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### The Core Timeline
```
01-04-2024 31-03-2025 31-07-2025
| | |
Year Begins Balance Sheet BOD Approves
(FY 24-25) Date (B/S Date) Financial Statements
```
The central question AS 4 answers:
> Should events that occur between the B/S date and the date of BOD approval be reflected in the previous year's financial statements, or the next year's?
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### Definition: Contingency
A contingency is a condition or situation whose ultimate outcome will be determined by the occurrence of one or more uncertain future events.
> Note: All general contingencies have been moved to AS 29. AS 4 retains only the contingency related to provision for bad and doubtful debts.
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### Definition: Events Occurring After the Balance Sheet Date
These are significant events – both favourable and unfavourable – that occur between:
- The Balance Sheet Date, and
- The date on which the financial statements are approved by the Board of Directors (BOD).
```
B/S Date: 31-03-2025
BOD Approval: 31-07-2025
Shareholder Approval: 16-08-2025
AS 4 window = 01-04-2025 to 31-07-2025
(Events between B/S date and BOD approval — NOT shareholder approval)
```