IAS 10 - EVENTS AT THE END OF REPORTING PERIOD Flashcards
This is when the reporting date occurs in calendar year.
December 31
This is when the starting date occurs in calendar year.
January 10
This is when the FS is authorized and approved by shareholders for issuance and end of audit during calendar year.
March 25
This is when the deadline of filing to BIR during calendar year.
April 15
Events that occur on or before Dec 31.
Adjusting Events
Events that occur after Dec 31 and needs to disclose in the notes to financial statements
Non- Adjusting Events or for Disclosure
If non-adjusting events are material, non- disclosure could influence the economic decision of users taken on the basis of the financial statements
True or False?
True
What is the standard that follows the IAS 10?
PAS (Philippine Accounting Standards) 10
According to the scope of PAS 10, these are events whether favorable or unfavorable, that occur between the end of reporting period and the date on which the financial statements are authorized for issue.
Events after the reporting period
Events after the reporting period are also known as and may require either adjustment or disclosure
Subsequent events
What are the types of events after reporting period?
Adjusting events and Non- adjusting events
Are those that provide evidence of condition that exist at the end of the reporting period.
Adjusting events
Are those that are indicative of conditions that arise after the end of the reporting period.
Non- adjusting events
Settlement after the reporting period of a court case because it confirms that the entity already had a present obligation at the end of the reporting period.
What kind of events after reporting period is this?
Adjusting event
Sale of inventories after the reporting period may give evidence about the net realizable value at the reporting date.
What kind of events after reporting period is this?
Adjusting event
The determination after the reporting period of the cost of assets purchased or the proceeds from assets sold before the end of reporting period.
What kind of events after reporting period is this?
Adjusting event
The discovery of fraud or errors that show the financial statements were incorrect.
What kind of events after reporting period is this?
Adjusting event
What are the treatments for adjusting events?
Bad debts written off or provided for
Inventory written down to NRV is lower than cost
Provision made for payments due under a legal case
Business combination after the reporting period.
What kind of events after reporting period is this?
Non-adjusting event
Plan to discontinue an operation.
What kind of events after reporting period is this?
Non-adjusting event
Major purchase and disposal of asset or expropriation of major asset by government.
What kind of events after reporting period is this?
Non-adjusting event
Destruction of major production plant by the fire after the reporting period.
What kind of events after reporting period is this?
Non-adjusting event
Announcing or commencing the implementation of a major restructuring.
What kind of events after reporting period is this?
Non-adjusting events
What are the non-adjusting event treatments?
The nature of the event: and
An estimate of its financial effect, or a statement that such an estimate cannot be made
On what principle basis does entity shall not prepare financial statements if events after the reporting period indicate that the entity shall not be able to continue as irrespective of whether such events are indicative of conditions that arose after the end of reporting period or not?
Going concern principle
If financial statements are not prepared on the going concern basis, it shall disclose this fact in the financial statements along with any major uncertainties that may cast considerable doubt regarding the entity’s ability to operate as a going concern.
True or False?
True
PAS 10, paragraph 11, An entity shall disclose the date when the financial statements were authorized for issue and who gave that authorization.
PAS 10, paragraph 11, An entity shall disclose the date when the financial statements were authorized for issue and who gave that authorization.
If the entity’s owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact.
True or False?
True
