1. EVENTS AFTER THE REPORTING PERIOD IAS 10
FAC
EVENTS AFTER THE REPORTING PERIOD
IAS 10

2. EVENTS AFTER THE REPORTING PERIOD
STUDY OBJECTIVES:
NOTION OF ‘EVENTS AFTER REPORTING DATE’
ADJUSTING EVENTS
NON-ADJUSTING EVENTS
GOING CONCERN
DIVIDENDS
DISCLOSURE

3. 1. NOTION OF ‘EVENTS AFTER REPORTING DATE
Focus is here!
Beg of end of FS authorised
reporting reporting for
period period issue
1.2 Meaning of ‘authorised for issue’
1.3 Events may be ‘adjusting’ or ‘non-adjusting’
ie may or may not adjust amounts in FS

4. 2. ADJUSTING EVENTS 2.1 Adjusting events
are events that provide evidence of conditions
that existed at the end of the reporting date.
therefore
adjust the amounts recognised in FS
2.2 Examples of adjusting events!
IAS 10; paragraph 9

5. 3. NON-ADJUSTING EVENTS 3.1 Non-adjusting events
are events that are indicative of conditions
that arose after the reporting date.
therefore
do not adjust the amounts recognised in FS
3.2 Examples of non-adjusting events!
IAS 10; paragraph 22 (Pg 133 Figure 7 Discr Acc. 15th ed.)

6. 4. GOING CONCERN
4.1 Entity shall not prepare FS on going concern basis if management determines after the reporting period :-
to liquidate the entity, or
to cease trading, or
that there is no realistic alternative but to do so
4.2 Deteriorating operating results or financial position after year end may bring the going concern assumption into question
effect may be so pervasive so as to require a change in the basis of accounting
eg. use liquidation/exit values
4.3 Specific IAS1 requirements!!!!

7. 5. DIVIDENDS 5.1 If dividend declared after reporting period
cannot recognise as liability at reporting date
why? NB. that declaration of dividend triggers a liability
but disclosure required
5.2 What if dividend declared on redeemable preference shares after year end?

8. 6. DISCLOSURE 6.1 Date of authorisation for issue
And who gave that authorisation
6.2 Update disclosure about conditions at end of reporting period
even if information does not affect amounts
eg. update disclosures for a contingent liability
6.3 Disclosure required for each material category of non-adjusting event:
nature of the event
estimate of its financial effect
or state that such estimate cannot be made.