IAS 10 - Events After Reporting Period

Question 1

what is an event after the reporting period?

Answer 1

an event which occurs between the end of the reporting period and when the FS are authorized for issue

Question 2

what are the two kinds of events after the reporting period?

Answer 2

• adjusting events
• non-adjusting events

Question 3

what is an adjusting event?

Answer 3

events where there is evidence that the conditions already existed at the end of the reporting period

Question 4

what is a non-adjusting event?

Answer 4

events that are indicative that the conditions arose after the end of the reporting date

Question 5

what do we do with adjusting events?

Answer 5

we make adjustments for them in the FS that must still be authorized

Question 6

what do we do with non-adjusting events?

Answer 6

we do not adjust, we disclose the event if it is material to the decisions of users

Question 7

what will we disclose for non-adjusting events?

Answer 7

• nature of the event
• estimate of its financial effect

Question 8

how does this IAS effect going concern?

Answer 8

if the entity expects that after the reporting date it will liquidate / cease trading, it cannot prepare the FS on going concern and must disclose

Question 9

to what does adjusting not apply?

Answer 9

if the entity declares dividends after the reporting date

Question 10

difference between events after RD and retrospective adjustments?

Answer 10

retrospective adjustments are to finalized, published FS; events after RD are adjusted for in FS that must still be authorized for issue