IAS 10

• IAS 10 Events after the Reporting Period

  Standard that prescribes when an entity should adjust its financial statements for events after the reporting period and the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting period
• International Accounting Standards Board adopted IAS 10 Events After the Balance Sheet Date

  April 2001
• IAS 10 Events After the Balance Sheet Date originally issued by the International Accounting Standards Committee


  May 1999
• IAS 10 Contingencies and Events Occurring After the Balance Sheet Date issued


  June 1978
• IAS 37 Provisions and Contingent Assets and Contingent Liabilities issued

  1998
• Board issued a revised IAS 10 with a modified title - Events after the Balance Sheet Date


  December 2003
• Changes in terminology made by IAS 1 Presentation of Financial Statements, title of IAS 10 changed to Events after the Reporting Period

  2007
• IFRS 13 Fair Value Measurement issued, made minor consequential amendments to IAS 10


  May 2011
• IFRS 9 Financial Instruments issued, made minor consequential amendments to IAS 10


  July 2014
• Definition of Material (Amendments to IAS 1 and IAS 8) issued, made minor consequential amendments to IAS 10


  October 2018
• IAS 10 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting
• IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance
• Events after the reporting period


  Events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue
• Adjusting events after the reporting period


  Events that provide evidence of conditions that existed at the end of the reporting period
• Non-adjusting events after the reporting period


  Events that are indicative of conditions that arose after the reporting period
• Authorisation for issue


  The process involved in authorising the financial statements for issue, which varies depending on management structure, statutory requirements and procedures
• Authorisation for issue process


  • Management completes draft financial statements, board of directors reviews and authorises for issue, financial statements made available to shareholders who approve them at annual meeting, then filed with regulatory body
• Authorisation for issue process

  • Management authorises financial statements for issue to supervisory board made up of non-executives, supervisory board approves, financial statements made available to shareholders who approve at annual meeting, then filed with regulatory body
• Events after the reporting period include all events up to the date when the financial statements are authorised for issue, even if those events occur after the public announcement of profit or other selected financial information
• Adjusting events after the reporting period

  Entity shall adjust amounts recognised in financial statements to reflect adjusting events
• Adjusting events after the reporting period


  • Settlement of court case confirming entity had present obligation at end of reporting period
  • Receipt of information indicating asset was impaired at end of reporting period
  • Determination of cost of assets purchased or proceeds from assets sold before end of reporting period
  • Determination of profit-sharing or bonus payments if entity had present obligation at end of reporting period
  • Discovery of fraud or errors showing financial statements are incorrect
• Non-adjusting events after the reporting period

  Entity shall not adjust amounts recognised in financial statements to reflect non-adjusting events
• Non-adjusting events after the reporting period


  • Decline in fair value of investments between end of reporting period and date financial statements authorised for issue
• Dividends


  If an entity declares dividends to holders of equity instruments after the reporting period, it shall not recognise those dividends as a liability at the end of the reporting period
• An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting period
• The decline in fair value does not normally relate to the condition of the investments at the end of the reporting period, but reflects circumstances that have arisen subsequently
• An entity does not adjust the amounts recognised in its financial statements for the investments
• An entity does not update the amounts disclosed for the investments as at the end of the reporting period, although it may need to give additional disclosure
• Dividends


  Dividends declared to holders of equity instruments after the reporting period shall not be recognised as a liability at the end of the reporting period
• If dividends are declared after the reporting period but before the financial statements are authorised for issue, the dividends are not recognised as a liability at the end of the reporting period because no obligation exists at that time
• Such dividends are disclosed in the notes in accordance with IAS 1 Presentation of Financial Statements
• Going concern


  An entity shall not prepare its financial statements on a going concern basis if management determines after the reporting period either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so
• Deterioration in operating results and financial position after the reporting period may indicate a need to consider whether the going concern assumption is still appropriate
• If the going concern assumption is no longer appropriate, the effect is so pervasive that this Standard requires a fundamental change in the basis of accounting, rather than an adjustment to the amounts recognised within the original basis of accounting
• IAS 1 specifies required disclosures if the financial statements are not prepared on a going concern basis or if management is aware of material uncertainties related to events or conditions that may cast significant doubt upon the entity's ability to continue as a going concern
• Date of authorisation for issue


  An entity shall disclose the date when the financial statements were authorised for issue and who gave that authorisation
• If the entity's owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact
• It is important for users to know when the financial statements were authorised for issue, because the financial statements do not reflect events after this date
• If an entity receives information after the reporting period about conditions that existed at the end of the reporting period, it shall update disclosures that relate to those conditions, in the light of the new information
• Non-adjusting events after the reporting period


  If non-adjusting events after the reporting period are material, non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements