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Events after reporting date - Coggle Diagram
Events after reporting date
Objectives- IAS 10 prescribes
When an entity should adjust f/s for events after the reporting period
The disclosures of the date of authorization of the statements as well as the disclosures of the events after the reporting period
Adjusting events after reporting date
Entity shall adjust amounts recognized in F/S to reflect adjusting events after the reporting period
Dividends
If dividends are declared after reporting date, entity shall not recognize those dividends as liability at reporting date
Does not comply to IAS 37 requirements of (current obligation on reporting date) if dividends are declared after reporting date
Going concern
Entity shall not prepare F/S on going concern basis if management intend to liquidate the entity or cease trading after reporting date
If results weaken after reporting date, reconsider if going concern principle is still applicable
Events after reporting period
All events after the reporting date up to the date when the F/S are authorized for issue are taken into account
Two types:
Those that provide additional evidence of conditions that existed at end of the reporting period (adjusting events)
Those that are indicative of conditions that arose after the reporting period (non-adjusting events)
Non-adjusting events
If non-adjusting events are material (and non-disclosure could influence appropriate evaluations or decisions of users) disclose for each material category of non-adjusting events after reporting date
Nature of event
Estimate of its financial effect, or a statement that such an estimate cannot be made
Non-adjusting events after reporting date
Entity shall not adjust amounts recognized in F/S to reflect non-adjusting events after the reporting period
It must be disclosed if the event is material