Page 249 - F1 Integrated Workbook STUDENT 2018

IAS 2, 8, 10, 34 and IFRS 8

IAS 10 Events after the Reporting Period, defines an event after the end of the
reporting period as ‘events after the end of the reporting period are 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).

IAS 10 splits events after the reporting date into adjusting and non-adjusting.

 Adjusting Events – those events which provide additional evidence of
conditions already in existence at the reporting date. The financial statements
should be adjusted to include the effect of such events.

 Non-adjusting Events – those events which concern conditions that arose
after the reporting date. The financial statements should not be adjusted but
disclosure by note of these events should be made if it is felt important to users’
understanding.

The following are the main types of adjusting and non-adjusting events.

Adjusting events Non-adjusting events
Discovery of errors or fraud Fluctuations in tax/exchange rates
Adjustment to valuations of inventory Issue of shares
Major customers going into liquidation Acquisition/disposal/merger of business

Completion of an insurance claim Fires or floods
Completion of a court case Plans for restructuring

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