2. IAS 10 Flashcards
What is IAS10?
Events that occur after reporting date
What are the two events that can occur after reporting date?
- Adjusting events
2. Non adjusting events
What is an adjusting event?
An event that previously existed where further information has arisen
What are some examples of adjusting events?
- Debtor becomes bad (we knew he might have)
2. NRV has to be adjusted
What is a non adjusting event?
A situation that never existed before reporting date
What is done with a non adjusting event?
Only a note is disclosed with reason and estimation of financial effect
What is an examples of a non adjusting event?
Factory fire
Are there any journal entries for non adjusting events?
NO
What are three exceptions that are seen as non adjusting events?
- Dividends declared
- Going concern
- Audit fees
What is the authorization date?
When management has authorized issue of statements
When management issues authorization to a board of advisories, when is the authorization date?
When management issues authorization
Is resolution of court case adjusting or non adjusting?
Adjusting:
- Adjust previous probable liability OR
- Raise previous possible liability
Would impairments of assets after reporting date be adjusting event?
Yes
E.g. Debtor went bad
Are determination of cost of assets purchase or proceeds from sales from before reporting date adjusting events?
Yes
Are fraud or error corrections an adjusting event?
Yes
