IAS 10 - Events after the Reporting Period

Question 1

What are adjusting events?

Answer 1

Events that provide additional evidence of conditions that existed at the end of the reporting period and the date when stats are issued.

Question 2

What are non-adjusting events?

Answer 2

Indicative of conditions that arose after the reporting period and the date when stats are issued. These will be disclosed when material

Question 3

How are dividends after the reporting period accounted for?

Answer 3

The entity should not adjust for dividends, or recognise them as a liability. Disclose only if material

Question 4

What are examples of adjusting events?

Answer 4

A legal dispute relating to the period is settled after the period and before stats are issued.

Discovery of a fraud that occurred during the year.

Determination of the sale proceeds of an item of plant sold before year end.