IAS 10 - Events After the Reporting Period

Question 0

What are the two types of events after the reporting period?

Answer 0

1) ADJUSTING EVENTS AFTER THE REPORTING PERIOD - which provide evidence of conditions which existed at the end of the reporting period.
2) NON-ADJUSTING EVENTS AFTER THE REPORTING PERIOD - are those that are indicative of conditions that arose after the reporting period

Question 1

What is the definition of events after the reporting period?

Answer 1

Events both favourable and unfavourable, which occur between the end of the reporting period and the date on which the financial statements are authorised for issue

Question 2

What are the accounting treatments for events after the reporting period?

Answer 2

ADJUSTING EVENTS AFTER THE REPORTING PERIOD = An entity should adjust the amounts recognised in its financial statements

NON ADJUSTING EVENTS AFTER THE REPORTING PERIOD = An entity should not adjust the amounts recognised in its financial statements

DIVIDENDS DECLARED = after the reporting period should not be recognised as a liability at the end of the reporting period because no obligation exists at that date.