In February a Year After the Merger but Before the Financial

Essay

In February a year after the merger but before the financial statements have been authorized for issuance, Streatham-Croyden Foundries performed a year-end review of its inventory and determined that its inventory of cast iron fixtures was impaired due to changes in style trends. Based on sales, and market analysis, the fixtures became impaired sometime within a ten day window around year end (December 31). Is this an adjusting or a non-adjusting event? Why? What principles in the conceptual framework (chapter 2) guided your decision?