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LKAS 10 - EVENTS AFTER THE REPORTING PERIOD - Coggle Diagram
LKAS 10 - EVENTS AFTER THE REPORTING PERIOD
Events after the reporting period
are those events, favorable & unfavorable that occur between the end of the reporting period & the date when the F/S are authorized for issue.
Adjusting events
EXAMPLES
A debtor who existed at 31.03.2020 was bankrupted before authorization (10.08.2020) should be adjusted as at 31.03.2020.
Judgment given for a pending court case after the reporting period.
Selling of stock less than cost of inventory after the reporting period which was held at the end of the period.
Actual value of an asset purchased during the accounting period was decided after the reporting period.
Non adjusting events
EXAMPLES
Parts of stocks as at 10.05.2020 were destroyed by fire. This event does not affect the stocks as at 31.03.2020' But a note should be disclosed for the year ended 31.03.2020. This should be adjusted during the next accounting period.
Proposed dividend for ordinary share holder after the reporting period.
Reduction / Increase in market value of investments after the reporting period
A part of a building taken over by the government after reporting period.
Differences
Adjusting events
Provides at the end of the reporting period
These would affect profit or loss and statement of comprehensive income and statement of financial position.
Adjusting in financial statements.
Disclosure and adjusting needed.
Non adjusting events
Presents a situation existed after the reporting period
Do not affect on profit or loss and comprehensive income statement and statement of financial position.
Non adjusting financial statement.
Disclose by way of a note