IAS 10

Events after the Reporting Period

By:- Yohannes Negatu
(ACCA,DipIFR,Cert IPSAS,Cert BV)
 Overview
 OBJECTIVE
 SCOPE
 DEFINITIONS
 RECOGNITION AND MEASUREMENT
 Adjusting events after the reporting period
 Non-adjusting events after the reporting period
 Dividends
 DISCLOSURE
 Date of authorization for issue
 Updating disclosure about conditions at the end of the reporting
period
 Non-adjusting events after the reporting period
 OBJECTIVE
 To determine whether the financial statement
should adjust
 To prescribe the disclosure requirement
 SCOPE
The Standard shall be applied in the accounting for,
and disclosure of, events after the reporting period.
 DEFINITIONS
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).
 RECOGNITION AND MEASUREMENT

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.
examples of adjusting events occurs at the end of
the reporting period :-
(a) a court case that confirms that the entity had a
present obligation
(b) the receipt of information after the reporting
period indicating that an asset was impaired
 continued
(c) the determination of the cost of assets.
(d) the determination of the amount of profit-sharing
or bonus payments.
(e) the discovery of fraud or errors.
 continued
Non-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 the event is material disclose it.
 continued
 examples of non-adjusting events after the
reporting period:-
(a) a major business combination
(b) announcing a plan to discontinue an operation
(c) major purchases of assets, classification of asset
under IFRS 5
(d) the destruction of a major production plant by a
Fire
(e) announcing, or commencing a major restructuring
(f) changes in tax rates or tax laws
 Dividends
If dividends are declared after the reporting period
but before the financial statements are authorized for
issue, the dividends are not recognized as a liability at
the end of the reporting period because no obligation
exists at that time
 DISCLOSURE
The following should be disclosed
(a) Date of authorization for issue
(b) The nature of the event
(c) An estimate of its financial effect
Thank You
Questions and Discussion