EVENTS AFTER

THE REPORTING
PERIOD
PAS 10
CHAPTER 12
Learning Objectives

 Define events after the reporting period.

 State the accounting requirements for events after
the reporting period.
Events after the Reporting Period

 Events after the reporting period are “those events,

favorable or unfavorable, that occur between the end of
the reporting period and the date that the financial
statements are authorized for issue.” (PAS 10)
 Two types of events after the reporting
period
1. Adjusting events after the reporting period – are those
that provide evidence of conditions that existed at the end
of the reporting period.
2. Non-adjusting events after the reporting period – those
that are indicative of conditions that arose after the
reporting period
Date of authorization of the financial
statements

This date is the date when management

authorizes the financial statements for
issue regardless of whether such
authorization for issue is for further
approval or for final issuance to users.
 Examples of adjusting events:
1. The settlement after the reporting period of a court case that confirms that the
entity has a present obligation at the end of reporting period.
2. The receipt of information after the reporting period indicating that an asset
was impaired at the end of reporting period. For example:
i. The bankruptcy of a customer that occurs after the reporting period may
indicate that the carrying amount of a trade receivable at the end of
reporting period is impaired.
ii. The sale of inventories after the reporting period may give
evidence to their net realizable value at the end of reporting period
Examples of adjusting events:

3. The determination after the reporting period of the cost of asset

purchased, or the proceeds from asset sold, before the end of
reporting period.
4. The discovery of fraud or errors that indicate that the financial
statements are incorrect.
Examples of non-adjusting events normally
requiring disclosures:
1. Changes in fair values, foreign exchange rates, interest rates or
market prices after the reporting period.
2. Casualty losses (e.g., fire, storm, or earthquake) occurring after the
reporting period but before the financial statements were
authorized for issue.
3. Litigation arising solely from events occurring after the reporting
period.
4. Major ordinary share transactions and potential ordinary share
transactions after the reporting period.
Examples of non-adjusting events normally
requiring disclosures:
5. Major business combination after the reporting period.
6. Announcing a plan to discontinue an operation after the reporting
period.
7. Declaration of dividends after the reporting period
Disclosures

• Date of authorization for issue

• Adjusting events
• Material Non-adjusting events