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EVENTS AFTER THE BALANCE SHEET DATE

Key Definitions
Event after the balance sheet date: An event, which could be favorable or unfavorable, that
occurs between the balance sheet date and the date that the financial statements are authorized
for issue.
Adjusting event: An event after the balance sheet date that provides further evidence of
conditions that existed at the balance sheet, including an event that indicates that the going
concern assumption in relation to the whole or part of the enterprise is not appropriate.
Non-adjusting event: An event after the balance sheet date that is indicative of a condition that
arose after the balance sheet date.
Accounting
Adjust financial statements for adjusting events events after the balance sheet date that
provide further evidence of conditions that existed at the balance sheet, including events
that indicate that the going concern assumption in relation to the whole or part of the
enterprise is not appropriate.
Do not adjust for non-adjusting events events or conditions that arose after the balance
sheet date.
If an entity declares dividends after the balance sheet date, the entity shall not recognize
those dividends as a liability at the balance sheet date. That is a non-adjusting event.
Going Concern Issues Arising After Balance Sheet Date
An entity shall not prepare its financial statements on a going concern basis if management
determines after the balance sheet date either that it intends to liquidate the entity or to cease
trading, or that it has no realistic alternative but to do so.
Disclosure

Non-adjusting events should be disclosed if they are of such importance that non-disclosure
would affect the ability of users to make proper evaluations and decisions. The required
disclosure is (a) the nature of the event and (b) an estimate of its financial effect or a
statement that a reasonable estimate of the effect cannot be made.

A company should update disclosures that relate to conditions that existed at the balance
sheet date to reflect any new information that it receives after the balance sheet date about
those conditions.

Companies must disclose the date when the financial statements were authorized for issue
and who gave that authorization. If the enterprise's owners or others have the power to
amend the financial statements after issuance, the enterprise must disclose that fact.

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RELATED PARTY DISCLOSURES
Objective of PAS 24
The objective of {AS 24 is to ensure that an entity's financial statements contain the disclosures
necessary to draw attention to the possibility that its financial position and profit or loss may have
been affected by the existence of related parties and by transactions and outstanding balances
with such parties.
Related Parties
Parties are considered to be related if one party has the ability to control the other party or to
exercise significant influence or joint control over the other party in making financial and operating
decisions. A party is related to an entity if:
(a) Directly, or indirectly through one or more intermediaries, the party:
(i) Controls, is controlled by, or is under common control with, the entity (this includes
parents, subsidiaries and fellow subsidiaries);
(ii) Has an interest in the entity that gives it significant influence over the entity; or
(iii) Has joint control over the entity;
(b) The party is an associate (as defined in IAS 28 Investments in Associates) of the entity;
(c) The party is a joint venture in which the entity is a venturer
(d) The party is a member of the key management personnel of the entity or its parent;
(e) The party is a close member of the family of any individual referred to in (a) or (d).
They may include
a. The individuals domestic partner and children
b. Children of the individuals domestic partner; and
c. Dependants of the individual or the individuals domestic partner
(f) The party is an entity that is controlled, jointly controlled or significantly influenced by or
for which significant voting power in such entity resides with, directly or indirectly, any
individual referred to in (d) or (e); or
(g) The party is a post-employment benefit plan for the benefit of employees of the entity, or
of any entity that is a related party of the entity.
The following are not necessarily related parties
Two enterprises simply because they have a director or key manager in common;
Two venturers who share joint control over a joint venture;
Providers of finance, trade unions, public utilities, government departments and agencies in
the course of their normal dealings with an enterprise; and
A single customer, supplier, franchiser, distributor, or general agent with whom an enterprise
transacts a significant volume of business merely by virtue of the resulting economic
dependence.
Related Party Transactions - Is a transfer of resources, services, or obligations between related
parties, regardless of whether a price is charged.
Disclosure
Relationships between parents and subsidiaries - Regardless of whether there have been
transactions between a parent and a subsidiary, an entity must disclose the name of its parent and,
if different, the ultimate controlling party. If neither the entity's parent nor the ultimate controlling
party produces financial statements available for public use, the name of the next most senior
parent that does so must also be disclosed.
Management Compensation - Disclose key management personnel compensation in total and for
each of the following categories:

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Short-term employee benefits;
Post-employment benefits;
Other long-term benefits;
Termination benefits; and
Equity compensation benefits.
Key management personnel are those persons having authority and responsibility for planning,
directing, and controlling the activities of the entity, directly or indirectly, including all directors
(whether executive or otherwise).
Related party transactions - If there have been transactions between related parties, disclose the
nature of the related party relationship as well as information about the transactions and
outstanding balances necessary for an understanding of the potential effect of the relationship on
the financial statements. These disclosures would be made separately for each category of related
parties and would include:
The amount of the transactions.
The amount of outstanding balances, including terms and conditions and guarantees.
Provisions for doubtful debts related to the amount of outstanding balances.
Expense recognized during the period in respect of bad or doubtful debts due from related
parties.
Examples of the Kinds of Transactions that Are Disclosed If They Are with a Related Party
Purchases or sales of goods.
Purchases or sales of property and other assets.
Rendering or receiving of services.
Leases.
Transfers of research and development.
Transfers under license agreements.
Transfers under finance arrangements (including loans and equity contributions in cash or
in kind).
Provision of guarantees or collateral.
Settlement of liabilities on behalf of the entity or by the entity on behalf of another party
A statement that related party transactions were made on terms equivalent to those that prevail in
arm's length transactions should be made only if such terms can be substantiated.

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