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IAS 10 Events after the Reporting Period

IAS 10
Events after the Reporting Period (summary)


The objective of this Standard is to prescribe:

(a) when an entity should adjust its financial statements for events after the reporting period; and
(b) the disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting period.
The Standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting period indicate that the going concern assumption is not appropriate.

Events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue. Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and

(b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).
An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events after the reporting period.

An entity shall not adjust the amounts recognized in its financial statements to reflect non-adjusting events after the reporting period. If non-adjusting events after the reporting period are material, non-disclosure could influence the economic decisions of users taken on the basis of the financial statements. Accordingly, an entity shall disclose the following for each material category of non-adjusting event after the reporting period:
(a) the nature of the event; and

(b) an estimate of its financial effect, or a statement that such an estimate cannot be made.
If an entity receives information after the reporting period about conditions that existed at the end of the reporting period, it shall update disclosures that relate to those conditions, in the light of the new information.

**This extract has been prepared by IASC Foundation staff and has not been approved by the IASB.
I AM A FINANCE MANAGER, MSc, CMA, CSCA. I AM PUBLISHING THESE ACCOUTING-RELATED POSTS FOR EVERY AMBITIOUS ACCOUNTANT ALL OVER THE WORLD, IN ORDER TO IMPROVE OUR SKILLS IN ACCOUNTING AND FINANCE FIELD, I HOPE THAT WE HELP EACH OTHER TO BECOME CERTIFIED , PROFESSIONAL AND CREATIVE ACCOUNTANTS.

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