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Events after the reporting period - Coggle Diagram
Events after the reporting period
IAS 10 Events after the reporting period
defines the extent to which different types of SFP events are to be reflected in the FSs
defines when an entity should adjust its FSs for events after the reporting period
sets out the disclosures that the entity should provide about the date the SFP was authorised
specifies disclosures required about events arising after the reporting period
"favourable and unfavourable events that occur between the end of the reporting period and the date when the FSs are authorised for issue"
Adjusting events
events which provide evidence of conditions that existed at the end of the reporting period
These require changes in amounts to be included in the FSs, because the FSs should reflect all available evidence as to the conditions existing at the end of the reporting period
subsequent determination of purchase price/sales proceeds of assets bought/sold before year end, or a valuation which provides evidence of a permanent diminution in value
Valuation of PPE which provides evidence of a permanent diminution in value
FSs/other information received about an unlisted entity which provides evidence of a permanent diminution in value of a long term investment
receipt of proceeds of inventory sales after period end, or other evidence linked to changes in NRV
Renegotiation of amounts owed by receivables or insolvency of a customer
Discovery of errors/frauds which show the FSs were incorrect
receipt of information regarding rates of tax
settlement after period end of court cases that confirms the entity had a present obligation at year end
Non-adjusting events
events which are indicative of conditions that arose after the reporting period
these do not result in changes in FS amounts and therefore adjustments, however these do require disclosure by FS notes
Issue of shares and loan notes
purchases and sales of NC assets and investments
losses of NC assets or inventories as a result of a catastrophe e.g. fire/flood
Opening new trading activities or extending existing trading activities
closing a significant part of the trading activities if this was not anticipated at year end
decline in the value of property and investments held as non current assets, if it can be demonstrated that the decline occurred after year end
government action such as nationalism
strikes and other labour disputes