IFRS/IAS Summary

IAS-10 - Events after the Balance Sheet date (Revised Dec 2003)

Key Definitions

Event after the balance sheet date: An event, which could be favourable or unfavourable, that occurs between the balance sheet date and the date that the financial statements are authorised for issue. [IAS 10.3]

Adjusting event: An event after the balance sheet date that provides further evidence of conditions that existed at the balance sheet, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. [IAS 10.3]

Non-adjusting event: An event after the balance sheet date that is indicative of a condition that arose after the balance sheet date. [IAS 10.3]

Accounting

• Adjust financial statements for adjusting events – events after the balance sheet date that provide further evidence of conditions that existed at the balance sheet, including events that indicate that the going concern assumption in relation to the whole or part of the enterprise is not appropriate. [IAS 10.8]
• Do not adjust for non-adjusting events – events or conditions that arose after the balance sheet date. [IAS 10.10]
• If an entity declares dividends after the balance sheet date, the entity shall not recognise those dividends as a liability at the balance sheet date. That is a non-adjusting event. [IAS 10.12]

Going Concern Issues Arising After Balance Sheet Date

An entity shall not prepare its financial statements on a going concern basis if management determines after the balance sheet date either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so. [IAS 10.14]

Disclosure

Non-adjusting events should be disclosed if they are of such importance that non-disclosure would affect the ability of users to make proper evaluations and decisions. The required disclosure is (a) the nature of the event and (b) an estimate of its financial effect or a statement that a reasonable estimate of the effect cannot be made. [IAS 10.21]

A company should update disclosures that relate to conditions that existed at the balance sheet date to reflect any new information that it receives after the balance sheet date about those conditions. [IAS 10.19]

Companies must disclose the date when the financial statements were authorised for issue and who gave that authorisation. If the enterprise's owners or others have the power to amend the financial statements after issuance, the enterprise must disclose that fact. [IAS 10.17]

Note:  Please note that these summaries are only for reference purposes and are not a substitute for the entire IFRS/IAS. Kindly read the whole text of IFRS/IAS before consulting these summaries.

Summaries are courtesy of Deloitte.

More Summaries

• IAS-01 - Presentation of Financial Statements (Revised Dec 2003)
• IAS-02 - Inventories (Revised Dec 2003)
• IAS-07 - Cash Flow Statements
• IAS-08 - Net Profit or Loss for The Period, Fundamental Errors and Changes in Accounting Policies (Revised)
• IAS-10 - Events after the Balance Sheet date (Revised Dec 2003)
• IAS-11 - Construction Contracts
• IAS-12 - Income Taxes
• IAS-14 - Segment Reporting
• IAS-15 - Information reflecting the effect of changing prices (Withdrawn Dec 2003)
• IAS-16 - Property, Plant and Equipment (Revised Dec 2003)
• IAS-17 - Leases (Revised Dec 2003)
• IAS-18 - Revenue
• IAS-19 - Employee Benefits
• IAS-20 - Accounting for Government grants
• IAS-21 - The effects of changes in foreign exchange rates (Revised Dec 2003)
• IAS-22 - Business Combinations
• IAS-23 - Borrowing Costs
• IAS-24 - Related Party Disclosures (Revised Dec 2003)
• IAS-26 - Accounting and reporting by defined benefit plans
• IAS-27 - Consolidated Financial Statements and Accounting for Investment in Subsidiaries (Revised Dec 2003)
• IAS-28 - Accounting for Investment in Associates (Revised Dec 2003)
• IAS-29 - Financial Reporting in Hyperinflationary Economies
• IAS-30 - Disclosures in Fin. Statements of Banks in Similar Fin. Institutions
• IAS-31 - Financial Reporting of Interests in Joint Ventures (Revised Dec 2003)
• IAS-32 - Financial Instruments: Disclosure and Presentation (Revised Dec 2003)
• IAS-33 - Earnings Per Share (Revised Dec 2003)
• IAS-34 - Interim Financial Reporting
• IAS-38 - Intangible Assets
• IAS-39 - Financial Instruments: Recognition and Measurement (Revised Dec 2003)
• IAS-40 - Investment Property (Revised Dec 2003)
• IAS-41 - Agriculture