level: Events after the reporting period
Questions and Answers List
level questions: Events after the reporting period
| Question | Answer |
|---|---|
| In the context of IAS 10 – Events after the reporting period – what is the treatment of a non-adjusting event? | The financial statements are not amended to reflect the event, but it is disclosed by way of a note if material. |
| In the context of IAS 10 – Events after the reporting period – what is the treatment of an adjusting event? | The financial statements are amended to reflect the event. |
| What are events after the reporting period in accordance with IAS10? | "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." |
| What are some examples of adjusting events? | The settlement after the reporting date of a court case which confirms a year end obligation. |
| What is an example of a non-adjusting event? | Announcing a plan to discontinue an operation. |