Subsequent events ASPE 3820 IAS 10

Question 1

Under what circumstances should financial statements be adjusted for a subsequent
event?

Answer 1

ASPE 3820
* Financial statements are adjusted when events occurring between the date of the financial statements and the date of their completion provide additional evidence relating to conditions that
existed at the date of the financial statements

• Disclosure is required when the condition did not exist at the date of the financial statements but the event:

‒ causes significant changes to assets or liabilities in the subsequent period or

‒ Will, or may, have a significant effect on the future operations of the enterprise.

IAS 10
* Same except that subsequent event period is
to the date of authorization of issue of
financial statements (rather than to their
completion)