Page 235 - F3 -FA Integrated Workbook STUDENT 2018-19

Preparing basic financial statements

IAS 10 Events after the reporting period

6.1 Definitions

IAS 10 Events After the Reporting Period defines such events as ‘those events,
favourable and unfavourable, that occur between the end of the reporting
period and the date when the financial statements are authorised for issue’
(IAS 10, Para 3).

The purpose of IAS 10 is to define to what extent events that occur after the reporting
period should be recognised in the financial statements.

Event after the reporting period

Provides Does not provide

evidence about evidence about

conditions at conditions at
reporting date reporting date

Adjust financial Impacts going If no impact on
statements concern going concerns
then do not
adjust financial
statements.

If material,
disclose effect.

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