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Total Number of Subscribers: 464 |
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Date:3rd Aug 2009 |
Compiled by: M Sathya Kumar |
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IAS 10 -Events After the Reporting
Period Key Definitions Event after the reporting period: An event, which could be favourable or unfavourable, that occurs between the end of the reporting period and the date that the financial statements are authorised for issue. [IAS 10.3] Adjusting event: An event after the reporting period that provides further evidence of conditions that existed at the end of the reporting period, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. [IAS 10.3] Non-adjusting event: An event after the reporting period that is indicative of a condition that arose after the end of the reporting period. [IAS 10.3] Accounting Ø
Adjust financial
statements for adjusting events – events after the balance sheet date that
provide further evidence of conditions that existed at the end of the
reporting period, including events that indicate that the going concern
assumption in relation to the whole or part of the enterprise is not
appropriate. [IAS 10.8] Ø
Do not adjust for
non-adjusting events – events or conditions that arose after the end of
the reporting period. [IAS 10.10] Ø If an entity declares dividends after the reporting period, the entity shall not recognise those dividends as a liability at the end of the reporting period. That is a non-adjusting event. [IAS 10.12] Going Concern Issues Arising After End of the Reporting Period An entity shall not prepare its financial statements on a going concern basis if management determines after the end of 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. [IAS 10.14] Disclosure Non-adjusting events should be disclosed if they are of such importance that non-disclosure would affect the ability of users to make proper evaluations and decisions. The required disclosure is (a) the nature of the event and (b) an estimate of its financial effect or a statement that a reasonable estimate of the effect cannot be made. [IAS 10.21] A company should update disclosures that relate to conditions that
existed at the end of the reporting period to reflect any new information
that it receives after the reporting period about those conditions. [IAS
10.19] Companies must disclose the date when the financial statements were authorised for issue and who gave that authorisation. If the enterprise's owners or others have the power to amend the financial statements after issuance, the enterprise must disclose that fact. [IAS 10.17]
Article is by one of the reputed IFRS consultant. | |
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