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IAS 10 Events After The Reporting Period: 02/15/2022 Delight Training &consulting Center

IAS 10 provides guidance on accounting for events after the reporting period. It distinguishes between adjusting events, which provide evidence of conditions that existed at the reporting date and require adjustment to amounts recognized in the financial statements, and non-adjusting events, which are indicative of conditions that arose after the reporting period and do not result in adjustment of the amounts in the financial statements but may require disclosure. The standard also specifies disclosure requirements regarding the date of authorization for issue of the financial statements and material non-adjusting events after the reporting period.

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37 views11 pages

IAS 10 Events After The Reporting Period: 02/15/2022 Delight Training &consulting Center

IAS 10 provides guidance on accounting for events after the reporting period. It distinguishes between adjusting events, which provide evidence of conditions that existed at the reporting date and require adjustment to amounts recognized in the financial statements, and non-adjusting events, which are indicative of conditions that arose after the reporting period and do not result in adjustment of the amounts in the financial statements but may require disclosure. The standard also specifies disclosure requirements regarding the date of authorization for issue of the financial statements and material non-adjusting events after the reporting period.

Uploaded by

Nimona Beyene
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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IAS 10

Events after theIAS 10 Period


Reporting

02/15/2022 Delight Training &Consulting Center


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
02/15/2022
events after the reporting period
Delight Training &Consulting Center
OBJECTIVE
 To determine whether the financial statement
should adjust
 To prescribe the disclosure requirement

02/15/2022 Delight Training &Consulting Center


SCOPE
The Standard shall be applied in the accounting for,
and disclosure of, events after the reporting period.

02/15/2022 Delight Training &Consulting Center


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
02/15/2022 period). Delight Training &Consulting Center
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
02/15/2022
asset was impaired
Delight Training &Consulting Center
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.

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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.

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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
02/15/2022 Delight Training &Consulting Center
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

02/15/2022 Delight Training &Consulting Center


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

02/15/2022 Delight Training &Consulting Center

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