IAS 10 – EVENTS AFTER THE REPORTING PERIOD

Question 1

IAS 10

Events after the reporting period

Answer 1

Accounting treatment of post balance sheet events (IAS 10)

Recognition
Adjusting event : One that provides evidence of conditions existing @ the year end…results in DOUBLE ENTRY
NON Adjusting event : One that DOES NOT provide evidence of conditions existing @ the year end… results in NOTE to F/S
Dividends declared AFTER THE YEAR END is non adjusting Company becoming a Non Going Concern after y/e is adjusting

Disclosure
NON Adjusting event : Disclose nature of event & estimate of financial effect or state that estimate cannot be made