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IAS 10 Events after the Reporting Period 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 and about events after the reporting period.
Revised December 2003. Effective 1 January 2005.
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- Synopsis (including link to unaccompanied version of IAS 10)
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Synopsis
Events occurring between the reporting date and the date on which the financial statement are authorised for issue should be classified as either adjusting or non-adjusting events.
- Adjusting events provide further evidence of conditions that existed at the reporting date, and result in adjustment to the financial statements.
- Non-adjusting events are indicative of a condition that arose after the end of the reporting period and do not result in adjustment to the financial statements. They should be disclosed if of such importance that non-disclosure would affect the ability of the users to make proper evaluations and decisions.
- Where events after the reporting period indicate that the going concern assumption is not appropriate, these are adjusting events.
- A dividend declared after the reporting period is a non-adjusting event.
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Editorial Note Related commentary and examples in Navigate IFRS Accounting Issue date IAS 10 Events after the Reporting Period (2003) was originally issued in December
2003, effective from 1 January 2005. All effective amendments issued since that date are reflected in the text of the standard. Detailed editorial notes set out the history of major amendments, and prospective amendments not yet effective. Key amendments The standard incorporates the following amendments that are already effective: To subscribe to this content, simply call
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About
IAS 10 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.
Events after 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. The two types of events are:
- those that provide evidence of conditions that existed at the end of the reporting period (adjusting events); and
- those that are indicative of conditions that arose after the reporting period (non-adjusting events).
An entity adjusts the amounts recognised in its financial statements to reflect adjusting events, but it does not adjust those amounts to reflect non-adjusting events. If non-adjusting events after the reporting period are material, IAS 10 prescribes disclosures.
Standard history
In April 2001 the International Accounting Standards Board (Board) adopted IAS 10 Events After the Balance Sheet Date, which had originally been issued by the International Accounting Standards Committee in May 1999. IAS 10 Events After the Balance Sheet Date replaced parts of IAS 10 Contingencies and Events Occurring After the Balance Sheet Date (issued in June 1978) that were not replaced by IAS 37 Provisions and Contingent Assets and Contingent Liabilities (issued in 1998).
In December 2003 the Board issued a revised IAS 10 with a modified title—Events after the Balance Sheet Date. This revised IAS 10 was part of the Board’s initial agenda of technical projects. As a result of the changes in terminology made by IAS 1 Presentation of Financial Statements in 2007, the title of IAS 10 was changed to Events after the Reporting Period.
Other Standards have made minor consequential amendments to IAS 10. They include IFRS 13 Fair Value Measurement (issued May 2011), IFRS 9 Financial Instruments (issued July 2014) and Definition of Material (Amendments to IAS 1 and IAS 8) (issued October 2018).