Indian Accounting Standard ( Ind AS) 10 Events after the Reporting Period

Contents
OBJEC I!E SCOPE "E#I$I IO$S RECO%$I IO$ A$" &EAS'RE&E$
Ad(usting events after the reporting period $on)ad(usting events after the reporting period "ividends

Paragraphs
1 2 3-7 8-13 8-9 10-11 12-13 14-16 17-22 17-18 19-20 21-22

%OI$% CO$CER$ "ISC*OS'RE
Date of approval for issue Updating disclosure about conditions at the end of the reporting period on-ad!usting events after the reporting period

APPE$"ICES A+ "istri,utions of $on)cash Assets to O-ners 1+ Co.parison -ith IAS 10/ Events after the Reporting Period and IFRIC 17

1

2 the corresponding approving authorit2 in case of an2 other entit2 for issue1 -o t2pes of events can . he fo00o-ing ter.s are used in this Standard -ith the .2 the Board of "irectors in case of a co. Paragraphs in bold type indicate the main principles.) O.e identified+ (a) those that provide evidence of conditions that e3isted at the end of the reporting period (ad"usting events a!ter the reporting period)4 and (b) those that are indicative of conditions that arose after the reporting period ( non# ad"usting events a!ter the reporting period)1 2 .eanings specified+ vents a!ter the reporting period are those events/ favoura.ents are approved .pan2/ and/ .Indian Accounting Standard (Ind AS) 10 Events after the Reporting Period (This Indian Accounting Standard includes paragraphs set in bold type and plain type. his Standard sha00 .et-een the end of the reporting period and the date -hen the financia0 state.0e/ that occur .(ective 1" #he ob!ective of this $tandard is to prescribe% (a) &hen an entit' should ad!ust its financial state(ents for events after the reporting period) and (b) the disclosures that an entit' should give about the date *hen the financial state(ents *ere approved for issue and about events after the reporting period" #he $tandard also re+uires that an entit' should not prepare its financial state(ents on a going concern basis if events after the reporting period indicate that the going concern assu(ption is not appropriate" Scope 2.e app0ied in the accounting for/ and disc0osure of/ events after the reporting period1 Definitions 3.0e and unfavoura. which have equal authority.

p0e 2n 18 3arch 2042. the financial state(ents are approved for issue on the date of approval b' the . 7.4.ent Ad(usting events after the reporting period 8.ounts recognised in its financia0 state. the financial state(ents are approved for issue *hen the (anage(ent approves the( for issue to the supervisor' board" E3a.oard for issue" -n such cases. not the date *hen shareholders approve the financial state(ents" 6.easure. An entit2 sha00 ad(ust the a. #he process involved in approving the financial state(ents for issue *ill var' depending upon the (anage(ent structure.oard. 7vents after the reporting period include all events up to the date *hen the financial state(ents are approved for issue. -n so(e cases. -n so(e cases. the (anage(ent of an entit' is re+uired to issue its financial state(ents to a supervisor' board /(ade up solel' of non-e0ecutives1 for approval" -n such cases. *ontingent +iabilities and *ontingent Assets or recognises a ne* provision" #he entit' does not (erel' disclose a contingent liabilit' because the 3 . the (anage(ent of an entit' approves financial state(ents for issue to its supervisor' board" #he supervisor' board is (ade up solel' of non-e0ecutives and (a' include representatives of e(plo'ees and other outside interests" #he supervisor' board approves the financial state(ents on 26 3arch 2042" #he financial state(ents are (ade available to shareholders and others on 1 5pril 2042" #he shareholders approve the financial state(ents at their annual (eeting on 16 3a' 2042 and the financial state(ents are then filed *ith a regulator' bod' on 17 3a' 2042" The !inancial statements are approved !or issue on $% &arch '()' (date o! management approval !or issue to the supervisory board). even if those events occur after the public announce(ent of profit or of other selected financial infor(ation" Recognition and .ents to ref0ect ad(usting events after the reporting period1 9. #he follo*ing are e0a(ples of ad!usting events after the reporting period that re+uire an entit' to ad!ust the a(ounts recognised in its financial state(ents. an entit' is re+uired to sub(it its financial state(ents to its shareholders for approval after the financial state(ents have been approved b' the . or to recognise ite(s that *ere not previousl' recognised% /a1 the settle(ent after the reporting period of a court case that confir(s that the entit' had a present obligation at the end of the reporting period" #he entit' ad!usts an' previousl' recognised provision related to this court case in accordance *ith -nd 5$ 37 Provisions. statutor' re+uire(ents and procedures follo*ed in preparing and finalising the financial state(ents" 5.

or that the a(ount of a previousl' recognised i(pair(ent loss for that asset needs to be ad!usted" 8or e0a(ple% /i1 the ban9ruptc' of a custo(er that occurs after the reporting period usuall' confir(s that a loss e0isted at the end of the reporting period on a trade receivable and that the entit' needs to ad!ust the carr'ing a(ount of the trade receivable) and the sale of inventories after the reporting period (a' give evidence about their net realisable value at the end of the reporting period" /c1 the deter(ination after the reporting period of the cost of assets purchased. but reflects circu(stances that have arisen subse+uentl'" #herefore.ents to ref0ect non)ad(usting events after the reporting period1 5n e0a(ple of a non-ad!usting event after the reporting period is a decline in (ar9et value of invest(ents bet*een the end of the reporting period and the date *hen the financial state(ents are approved for issue" #he decline in (ar9et value does not nor(all' relate to the condition of the invest(ents at the end of the reporting period. the dividends are not recognised as a liabilit' at the 13. 4 . before the end of the reporting period" /d1 the deter(ination after the reporting period of the a(ount of profit-sharing or bonus pa'(ents. An entit2 sha00 not ad(ust the a.settle(ent provides additional evidence that *ould be considered in accordance *ith paragraph 16 of -nd 5$ 37" /b1 the receipt of infor(ation after the reporting period indicating that an asset *as i(paired at the end of the reporting period. mployee -ene!its). 11. if the entit' had a present legal or constructive obligation at the end of the reporting period to (a9e such pa'(ents as a result of events before that date /see -nd 5$ $. If an entit2 dec0ares dividends to ho0ders of e5uit2 instru.ents (as defined in Ind AS 67 Financial Instruments: Presentation) after the reporting period/ the entit2 sha00 not recognise those dividends as a 0ia. although it (a' need to give additional disclosure under paragraph 21" "ividends 12. an entit' does not ad!ust the a(ounts recognised in its financial state(ents for the invest(ents" $i(ilarl'.i0it2 at the end of the reporting period1 -f dividends are declared after the reporting period but before the financial state(ents are approved for issue. or the proceeds fro( assets sold.ounts recognised in its financia0 state. the entit' does not update the a(ounts disclosed for the invest(ents as at the end of the reporting period. /e1 the discover' of fraud or errors that sho* that the financial state(ents are incorrect" /ii1 $on)ad(usting events after the reporting period 10.

16" 16" (b) "isc0osure "ate of approva0 for issue 17.end the financia0 state. rather than an ad!ust(ent to the a(ounts recognised *ithin the original basis of accounting" -nd 5$ 1 specifies re+uired disclosures if% /a1 the financial state(ents are not prepared on a going concern basis) or (anage(ent is a*are of (aterial uncertainties related to events or conditions that (a' cast significant doubt upon the entit':s abilit' to continue as a going concern" #he events or conditions re+uiring disclosure (a' arise after the reporting period.ut to do so1 Deterioration in operating results and financial position after the reporting period (a' indicate a need to consider *hether the going concern assu(ption is still appropriate" -f the going concern assu(ption is no longer appropriate.infor.ent deter.asis if .ation1 -n so(e cases. even *hen the infor(ation does not affect the a(ounts that it recognises in its financial state(ents" 2ne e0a(ple of the need to update disclosures is *hen evidence beco(es available after the reporting period about a contingent liabilit' that e0isted at the end of the reporting period" -n addition to 20" 5 .ents on a going concern . An entit2 sha00 not prepare its financia0 state.anage.ents -ere approved for issue and -ho gave that approva01 If the entit28s o-ners or others have the po-er to a.ines after the reporting period either that it intends to 0i5uidate the entit2 or to cease trading/ or that it has no rea0istic a0ternative .end of the reporting period because no obligation e0ists at that ti(e" $uch dividends are disclosed in the notes in accordance *ith -nd 5$ 1 Presentation o! . the effect is so pervasive that this $tandard re+uires a funda(ental change in the basis of accounting.ation after the reporting period a.inancial Statements" %oing concern 14.ents after issue/ the entit2 sha00 disc0ose that fact1 -t is i(portant for users to 9no* *hen the financial state(ents *ere approved for issue. an entit' needs to update the disclosures in its financial state(ents to reflect infor(ation received after the reporting period. because the financial state(ents do not reflect events after this date" 18" 'pdating disc0osure a.out conditions that e3isted at the end of the reporting period/ it sha00 update disc0osures that re0ate to those conditions/ in the 0ight of the ne.out conditions at the end of the reporting period 191 If an entit2 receives infor. An entit2 sha00 disc0ose the date -hen the financia0 state.

e . other disposals of assets.) 22" the nature of the event4 and an esti. a (a!or restructuring /see -nd 5$ 371) (a!or ordinar' share transactions and potential ordinar' share transactions after the reporting period -nd 5$ 33 arnings per Share re+uires an entit' to disclose a description of such transactions. an entit' updates its disclosures about the contingent liabilit' in the light of that evidence" $on)ad(usting events after the reporting period 21.ateria0 categor2 of non)ad(usting event after the reporting period+ (a) (.ents1 According02/ an entit2 sha00 disc0ose the fo00o-ing for each . for e0a(ple. b' issuing significant guarantees) and co((encing (a!or litigation arising solel' out of events that occurred after the reporting period" (c) /d1 (e) (f) /g1 (h) /i1 /!1 6 .ent that such an esti. classification of assets as held for sale in accordance *ith -nd 5$ 106.ic decisions that users . share splits or reverse share splits all of *hich are re+uired to be ad!usted under -nd 5$ 331) abnor(all' large changes after the reporting period in asset prices or foreign e0change rates) changes in ta0 rates or ta0 la*s enacted or announced after the reporting period that have a significant effect on current and deferred ta0 assets and liabilities /see -nd 5$ $' Income Ta3es1) entering into significant co((it(ents or contingent liabilities. or co((encing the i(ple(entation of.a:e on the . other than *hen such transactions involve capitalisation or bonus issues. /on#current Assets 0eld !or Sale and 1iscontinued 2perations.ateria0/ non)disc0osure cou0d inf0uence the econo.considering *hether it should recognise or change a provision under -nd 5$ 37.ate cannot .ade1 #he follo*ing are e0a(ples of non-ad!usting events after the reporting period that *ould generall' result in disclosure% (a) /b1 a (a!or business co(bination after the reporting period -nd 5$103 -usiness *ombinations re+uires specific disclosures in such cases1 or disposing of a (a!or subsidiar') announcing a plan to discontinue an operation) (a!or purchases of assets. If non)ad(usting events after the reporting period are .ate of its financia0 effect/ or a state. or e0propriation of (a!or assets b' govern(ent) the destruction of a (a!or production plant b' a fire after the reporting period) announcing.asis of the financia0 state.

7 .

o*nership interests in another entit' or disposal groups as defined in -nd 5$ 106) and /b1 4 6 distributions that give o*ners a choice of receiving either non-cash assets or a cash alternative" #his 5ppendi0 applies onl' to distributions in *hich all o*ners of the sa(e class of e+uit' instru(ents are treated e+uall'" #his 5ppendi0 does not appl' to a distribution of a non-cash asset that is ulti(atel' controlled b' the sa(e part' or parties before and after the distribution" #his e0clusion applies to the separate. an entit' (a' also give its o*ners a choice of receiving either non-cash assets or a cash alternative" -ndian 5ccounting $tandards /-nd 5$s1 do not provide guidance on ho* an entit' should (easure distributions to its o*ners /co((onl' referred to as dividends1" -nd 5$ 1 re+uires an entit' to present details of dividends recognised as distributions to o*ners either in the state(ent of changes in e+uit' presented as a part of the balance sheet or in the notes to the financial state(ents" 2 Scope 3 #his 5ppendi0 applies to the follo*ing t'pes of non-reciprocal distributions of assets b' an entit' to its o*ners acting in their capacit' as o*ners% /a1 distributions of non-cash assets /eg ite(s of propert'. Bac:ground 1 $o(eti(es an entit' distributes assets other than cash /non-cash assets1 as dividends to its o*ners2 acting in their capacit' as o*ners" -n those situations.aragraph 7 of -nd 5$ 1 defines o*ners as holders of instru(ents classified as e+uit'" 8 . the' collectivel' have the po*er to govern its financial and operating policies so as to obtain benefits fro( its activities": #herefore.2 of -nd 5$ 103 states that <5 group of individuals shall be regarded as controlling an entit' *hen. for a distribution to be outside the scope of this 5ppendi0 on the basis that the sa(e parties 6 1 2 #his 5ppendi0 deals .Appendi3 A Distribution of Non cash !ssets to "#ners1 This Appendix is an integral part of Ind AS 10. plant and e+uip(ent. inter alia. businesses as defined in -nd 5$ 103. as a result of contractual arrange(ents. *ith *hen to recognise dividends pa'able to its o*ners" . this 5ppendi0 does not appl' *hen the non-cash asset is ulti(atel' controlled b' the sa(e parties both before and after the distribution" .aragraph . individual and consolidated financial state(ents of an entit' that (a9es the distribution" -n accordance *ith paragraph 6.

0e 10 #he liabilit' to pa' a dividend shall be recognised *hen the dividend is appropriatel' authorised and is no longer at the discretion of the entit'. *hich is the date% /a1 *hen declaration of the dividend. this 5ppendi0 does not appl' *hen an entit' distributes so(e of its o*nership interests in a subsidiar' but retains control of the subsidiar'" #he entit' (a9ing a distribution that results in the entit' recognising a non-controlling interest in its subsidiar' accounts for the distribution in accordance *ith -nd 5$ 27" #his 5ppendi0 addresses onl' the accounting b' an entit' that (a9es a non-cash asset distribution" -t does not address the accounting b' shareholders *ho receive such a distribution" 8 Issues 9 &hen an entit' declares a distribution and has an obligation to distribute the assets concerned to its o*ners.control the asset both before and after the distribution.0e 11 5n entit' shall (easure a liabilit' to distribute non-cash assets as a dividend to its o*ners at the fair value of the assets to be distributed" 12 -f an entit' gives its o*ners a choice of receiving either a non-cash asset or a cash alternative. if the !urisdiction does not re+uire further approval" &easure. such ulti(ate collective po*er over the entit' (a9ing the distribution" 7 -n accordance *ith paragraph 6. eg b' (anage(ent or the board of directors.ent of a dividend pa2a. eg b' (anage(ent or the board of directors. ho* should it account for an' difference bet*een the carr'ing a(ount of the assets distributed and the carr'ing a(ount of the dividend pa'able> Accounting Princip0es . is approved b' the relevant authorit'. if the !urisdiction re+uires such approval. a group of individual shareholders receiving the distribution (ust have.hen to recognise a dividend pa2a. as a result of contractual arrange(ents. the entit' shall esti(ate the dividend pa'able b' considering both the fair value of each alternative and the associated probabilit' of o*ners selecting each alternative" 9 . or /b1 *hen the dividend is declared. this 5ppendi0 addresses the follo*ing issues% /a1 &hen should the entit' recognise the dividend pa'able> /b1 ?o* should an entit' (easure the dividend pa'able> /c1 &hen an entit' settles the dividend pa'able. it (ust recognise a liabilit' for the dividend pa'able" =onse+uentl'. eg the shareholders.

if an'. it shall recognise the difference.et-een the carr2ing a. after the end of a reporting period but before the financial state(ents are approved for issue. the entit' shall revie* and ad!ust the carr'ing a(ount of the dividend pa'able.0e 14 &hen an entit' settles the dividend pa'able. an entit' declares a dividend to distribute a non-cash asset. bet*een the carr'ing a(ount of the assets distributed and the carr'ing a(ount of the dividend pa'able in profit or loss" Presentation and disc0osures 16 5n entit' shall present the difference described in paragraph 14 as a separate line ite( in profit or loss" 16 5n entit' shall disclose the follo*ing infor(ation. if applicable% /a1 the carr'ing a(ount of the dividend pa'able at the beginning and end of the period) and /b1 the increase or decrease in the carr'ing a(ount recognised in the period in accordance *ith paragraph 13 as result of a change in the fair value of the assets to be distributed" 17 -f.13 5t the end of each reporting period and at the date of settle(ent. and the infor(ation about the (ethod used to deter(ine that fair value re+uired b' -nd 5$ 107 paragraph 27/a1 and /b1" 10 . *ith an' changes in the carr'ing a(ount of the dividend pa'able recognised in e+uit' as ad!ust(ents to the a(ount of the distribution" Accounting for an2 difference .ount of the assets distri. it shall disclose% /a1 the nature of the asset to be distributed) /b1 the carr'ing a(ount of the asset to be distributed as of the end of the reporting period) and /c1 the esti(ated fair value of the asset to be distributed as of the end of the reporting period.ount of the dividend pa2a.0e -hen an entit2 sett0es the dividend pa2a.uted and the carr2ing a. if it is different fro( its carr'ing a(ount.

ublic $hareholders =o(pan' 5 $ubsidiar' .sidiaries) . the entire transaction /including the distributions to the non-controlling shareholders1 is not *ithin the scope of the 5ppendi0" #his is because in a pro rata distribution to all o*ners of the sa(e class of e+uit' instru(ents.ution of shares of su.efore distribution 5fter distribution . but are not part o! this appendi3 Scope of the Appendi3 (paragraphs 6<=) C>AR 1 (distri.ublic shareholders .ution of avai0a.p0es These e3amples accompany.ublic shareholders =o(pan' 5 =o(pan' 5 5ssets -71 5ssu(e =o(pan' 5 is o*ned b' public shareholders" o single shareholder controls =o(pan' 5 and no group of shareholders is bound b' a contractual agree(ent to act together to control =o(pan' 5 !ointl'" =o(pan' 5 distributes certain assets /eg available-for-sale securities1 pro rata to the shareholders" #his transaction is *ithin the scope of the 5ppendi0" ?o*ever. 11 .I00ustrative e3a.0e)for)sa0e securities) .ublic shareholders . if one of the shareholders /or a group bound b' a contractual agree(ent to act together1 controls =o(pan' 5 both before and after the transaction. =o(pan' 5 $ubsidiar' . the controlling shareholder /or group of shareholders1 *ill continue to control the non-cash assets after the distribution" C>AR 7 (distri.efore distribution 5fter distribution -72 .

" #his transaction is *ithin the scope of the 5ppendi0" ?o*ever. the transaction is not *ithin the scope of the 5ppendi0" =o(pan' 5 accounts for the distribution in accordance *ith -nd 5$ 27 *onsolidated and Separate . if =o(pan' 5 distributes to its shareholders shares of $ubsidiar' . =o(pan' 5 controls =o(pan' . both before and after the transaction" -74 12 . and retains control of $ubsidiar' . pro rata to its shareholders..inancial Statements." =o(pan' 5 distributes all of the shares of $ubsidiar' . thereb' losing control of $ubsidiar' .-73 5ssu(e =o(pan' 5 is o*ned b' public shareholders" o single shareholder controls =o(pan' 5 and no group of shareholders is bound b' a contractual agree(ent to act together to control =o(pan' 5 !ointl'" =o(pan' 5 o*ns all of the shares of $ubsidiar' . representing onl' a non-controlling interest in $ubsidiar' .

parison -ith IAS 10/ Events after the Reporting Period and IFRIC Interpretation 17 1 Different ter(inolog' is used in this standard. vents a!ter the 5eporting Period. between Indian Accounting Standard (Ind AS) $( and the corresponding International Accounting Standard (IAS) $(. the ter( <balance sheet: is used instead of <$tate(ent of financial position:" #he *ords <approval of the financial state(ents for issue have been used instead of <authorisation of the financial state(ents for issue: in the conte0t of financial state(ents considered for the purpose of events after the reporting period" 13 . Co. The purpose o! this Appendi3 is only to bring out the di!!erences. i! any.Appendi3 1 /ote4 This Appendi3 is not a part o! the Indian Accounting Standard. e"g".