Events after balance sheet date and related parties

[stf877]

Hi,

I would appreciate if I had some advice on the following:

A director (also major shareholder) has resigned from his post and sold his shares to the remaining shareholders after the balance sheet date but before the financial statements are authorise for issue. As from his resignation, this person does not have control, directly or indirectly over the opertions of the company.

This former director and shareholder had a balance with the company, which in previous years was shown as related party balance.

Should this event be considered as a non adjusting event, viz.:
1. The loan still be considered as a related party balance in the current year's financial statements and
2. A note be included in the notes to the accounts?

Or should the event be treated as adjusting event and the loan transferred to other loans of the company?

stf877