IAS 10 - Events after the reporting period

Question 1

What are adjusting events?

Answer 1

Those events that provide evidence of conditions that actually existed at the end of the reporting period, albeit they were not known at the time.

Question 2

What are non-adjusting events?

Answer 2

Those events after the reporting period that are indicative of conditions that arose after the end of the reporting period.

Question 3

How to treat non-adjusting events in the statements of financial accounts?

Answer 3

Disclose in the notes.

Question 4

How to treat dividends declared after the reporting period?

Answer 4

These are treated as non-adjusting events as they are not an obligation at the reporting period.

Question 5

Should management determine that, after the reporting period, the company intends to liquidate or has no realistic alternative to do so - should the going concern basis still be used as a basis to prepare accounts?

Answer 5

No

Question 6

What are the disclosures to IAS 10 - events after the reporting period?

Answer 6

• The nature of the event

- an estimated financial effect , or statement that it is not possible to estimate the financial effect