IAS 10 Events after the Reporting Period

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Module Type Slides
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Book Slides 14Pages
Language English

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  • Piron Education, a subsidiary of Piron Corporation, is among the world's leading education technology companies. Leveraging cutting edge technology to provide web-based training and mobile learning, ...

The objective of this Standard is to prescribe:

(a) when an entity should adjust its financial statements for events after the reporting period; and

(b) the disclosuresthat an entity should give about the date when the financial statements were authorised for

issue and about events after the reporting period.

The Standard also requires that an entity should not prepare its financial statements on a going concern basis if

events after the reporting period indicate that the going concern assumption is not appropriate.

Events after the reporting period are those events, favourable and unfavourable, that occur between the end of

the reporting period and the date when the financial statements are authorised 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).

An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the

reporting period.

An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events

after the reporting period. If non-adjusting events after the reporting period are material, non-disclosure could

influence the economic decisions of userstaken on the basis of the financial statements. Accordingly, an entity

shall disclose the following for each material category of non-adjusting event after the reporting period:

(a) the nature of the event; and

(b) an estimate of its financial effect, or a statement that such an estimate cannot be made. If an entity receives information after the reporting period about conditions that existed at the end of the

reporting period, it shall update disclosures that relate to those conditions, in the light of the new information.

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