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    Pas 10 Events After The Reporting Period

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    Acissej
    This document defines events after the reporting period and categorizes them as either adjusting events or non-adjusting events. Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustment to the financial statements. Non-adjusting events indicate conditions that arose after the reporting period and require disclosure in the financial statements if significant. Examples of each type of event are provided. The document also notes that financial statements are authorized for issue when the board of directors reviews and authorizes them, not when shareholders approve them.

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    Pas 10 Events After The Reporting Period

    Uploaded by

    Acissej
    168 views1 page
    This document defines events after the reporting period and categorizes them as either adjusting events or non-adjusting events. Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustment to the financial statements. Non-adjusting events indicate conditions that arose after the reporting period and require disclosure in the financial statements if significant. Examples of each type of event are provided. The document also notes that financial statements are authorized for issue when the board of directors reviews and authorizes them, not when shareholders approve them.

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    Original Title

    PAS 10 EVENTS AFTER THE REPORTING PERIOD

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    This document defines events after the reporting period and categorizes them as either adjusting events or non-adjusting events. Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustment to the financial statements. Non-adjusting events indicate conditions that arose after the reporting period and require disclosure in the financial statements if significant. Examples of each type of event are provided. The document also notes that financial statements are authorized for issue when the board of directors reviews and authorizes them, not when shareholders approve them.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    168 views1 page

    Pas 10 Events After The Reporting Period

    Uploaded by

    Acissej
    This document defines events after the reporting period and categorizes them as either adjusting events or non-adjusting events. Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustment to the financial statements. Non-adjusting events indicate conditions that arose after the reporting period and require disclosure in the financial statements if significant. Examples of each type of event are provided. The document also notes that financial statements are authorized for issue when the board of directors reviews and authorizes them, not when shareholders approve them.

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    © All Rights Reserved
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    of 1

    PAS 10 EVENTS AFTER THE 4.

    Destruction of a major production plant by a


    fire after the reporting period
    REPORTING PERIOD 5. Major ordinary share transactions and
    potential ordinary share transactions after
    PAS 10, PARAGRAPH 3 -defines events after the the reporting period.
    reporting period as those events (favorable or 6. Announcing or commencing the
    unfavorable), that occur between the end of the implementation of major restructuring
    reporting period and the date on which the financial 7. Abnormally large changes after the reporting
    statements are authorized for issue. period in asset prices or foreign exchange
    rates.
    Events after the reporting period – SUBSEQUENT 8. Entering into significant commitments or
    EVENTS contingent liabilities, for example by issuing
    guarantees
    Require adjustment or disclosure
    9. Commencing major litigation arising solely
    TYPES OF EVENTS AFTER THE REPORTING PERIOD from events that occurred after the
    reporting period.
    a. ADJUSTING EVENTS- provide evidence of 10. Change in tax rate enacted or announced
    conditions that exist at the end of reporting after the end of reporting period that has a
    period. significant effect on current and deferred tax
    b. NONADJUSTING EVENTS- indicative of and liability.
    condition s that arise after the end of
    reporting period. FINANCIAL STATEMENTS AUTHORIZED FOR ISSUE
    Financial statements are authorized for issue when the
    Note: the entity is required only disclose
    board of directors reviews the financial statements and
    significant nonadjusting events.
    authorizes them issues.
    Adjusting event
    Example: Note: The financial statements are authorized for issue
    1. Resolution after the reporting period of a on the date of issue by the board of directors and not
    court case because it confirms that the entity on the date when shareholders approve the financial
    already had a present obligation statements.

    2. Bankruptcy of a customer which occurs after


    the reporting period

    3. Sale of inventories after the reporting period


    may give evidence about the net realizable
    value at reporting date

    4. The determination after the reporting period


    of the cost asset purchased or the proceeds
    from asset sold before the operating date.

    5. The determination after the reporting period


    of the profit sharing or bonus payment if the
    entity has the present obligation at the
    reporting date to make such payment

    6. The discovery of fraud or errors that show


    the financial

    Nonadjusting Event
    Example:
    1. Business combination after the reporting
    period
    2. Plan to discontinue an operation
    3. Major purchase and disposal of asset or
    expiration of major asset by government

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