Events after reporting date

Objectives- IAS 10 prescribes

Adjusting events after reporting date

Dividends

Going concern

Events after reporting period

Non-adjusting events

Non-adjusting events after reporting date

Entity shall not prepare F/S on going concern basis if management intend to liquidate the entity or cease trading after reporting date

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

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)

Entity shall adjust amounts recognized in F/S to reflect adjusting events after the reporting period

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

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

If results weaken after reporting date, reconsider if going concern principle is still applicable

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