Events after the reporting period

Question 1

what are events after the reporting period

Answer 1

events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue.

Question 2

adjusting event [IAS 10.3]

Answer 2

• 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.
• adjust the accounts

Question 3

non-adjusting event [IAS 10.3]

Answer 3

• An event after the reporting period that is indicative of a condition that arose after the end of the reporting period.
• add disclosure

Question 4

adjusting event treatment

Answer 4

• adjustment required
• adjust: profit and losses; other comprehensive income; assets and liabilities

Question 5

non-adjusting event treatment

Answer 5

• no adjustment permitted
• if the information is material a disclosure is required.
• Disclosure: note to financials includes nature of the event and estimate of financial effect.
• if the information is non material then no disclosure is required

Question 6

materiality

Answer 6

is it big enough to effect opinions on financial statements

Question 7

going concern

Answer 7

prepare on assumption company is continuing to provide