IAS 10 Events after the Reporting Period
Tax Guide: IAS 10 Events after the Reporting Period
SCOPE
This standard identifies when:
- Financial statements should be adjusted for events that occur after the reporting date.
- Events that occur after the reporting date that merely require disclosure in the financial statements.
Entities should consider all events that occur up to the date where the financial statements are authorised for issue, even if those events occur after the entity has already made public statements of selected financial information, including profit.
ADJUSTING EVENTS
Adjusting events are those events that provide evidence of conditions that existed at the end of the reporting period.
Financial statements are adjusted to reflect the impact of adjusting events.
NON-ADJUSTING EVENTS
Non-adjusting events are those events that are indicative of conditions that arose after the end of the reporting period.
Financial statements are not adjusted for the impact of non-adjusting events, they are merely disclosed.
GOING CONCERN
If it is determined after reporting date, but before the financial statements are finalised that the entity is no longer a going concern, the financial statements shall NOT be prepared on a going concern basis.
DIVIDENDS
If a dividend is declared after the end of the reporting period, the entity shall not recognise a liability in relation to that dividend at the end of the reporting period. This applies even when the entity is purporting that the dividend relates to a distribution of profit from the reporting period.
DISCLOSURES
Entities shall disclose:
- The date that the financial statements are authorised for issue, and whether the entity has the ability to change the financial statements after their issue.
- The nature and estimated financial effect of any material non-adjusting events
No specific disclosures are required for adjusting events, disclosures required by other standards should be updated to reflect the impact of such events.
CONTACTS
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| CHRISOF STEUBE Moore Singapore [email protected] | NEES DE VOS Moore DRV [email protected] | TESSA PARK Moore Kingston Smith [email protected] |
| EMILY KY CHAN Moore CPA Limited [email protected] | PAUL CALLAGHAN Moore Oman [email protected] | THEODOSIOS DELYANNIS Moore Greece [email protected] |
| IRINA HUGHES Johnston Carmichael [email protected] | SAHEEL ABDULHAMID Moore JVB LLP [email protected] |
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