EVENTS AFTER

THE REPORTING
PERIOD
PAS 10
DEFINITION
PAS 10, paragraph 3, defines events after the reporting period as
those events, whether favorable or unfavorable, that occur
between the end of reporting period and the date on which the
financial statements are authorized for issue.
Types of events after the reporting period
a. Adjusting events after the reporting period are those that
provide evidence of conditions that exist at the end of
reporting period.
b. Nonadjusting events after reporting period are those that are
indicative of conditions that arise after the end of reporting
period.
ADJUSTING EVENTS AFTER THE
REPORTING PERIOD
• An entity shall adjust the amounts recognized in its financial
statements to reflect this type of subsequent events. Such
events may require an enterprise to adjust the amounts on the
financial statements, to reclassify an information, or to
recognize a financial statement element that was not previously
recognized.
Examples of adjusting events(based on IAS 10, paragraph 9):
NON-ADJUSTING EVENTS AFTER
THE REPORTING PERIOD
• If non-adjusting events are material and non-disclosure could
influence the economic decisions of users taken on the basis of
the financial statements, the event and other related
information should be disclosed in the notes to the financial
statements. Such disclosures shall include the nature of the
event and an estimate of its financial effect, or a statement that
such an estimate cannot be made.
Examples of non-adjusting events(based on IAS 10,
paragraph 9):
Financial statements authorized for
issue
• Financial statements are authorized for issue when the board of
directors reviews the financial statements and authorizes them
for issue.
• The financial statements are authorized for issue on the date of
issue by the board of directors and not on the date when
shareholders approve the financial statements.
Disclosure of date of authorization for
issue
PAS 10, paragraph 17 and 18 provides:
Thank you!