Interpretation and Application of UK GAAP: For Accounting Periods Commencing On or After 1 January 2015

Chapter 27Events after the Reporting Period

1. Introduction
2. Adjusting Events
3. Non-Adjusting Events
4. Payment of Dividends
5. Going Concern
6. Authorising the Financial Statements for Issue
7. Disclosure Requirements

Introduction

It is a generally accepted concept that financial statements for a specific period-/year-end are prepared and authorised for issue some time after the reporting date has elapsed. Certainly for private companies in the UK, Companies House allows a period of nine months from the company's year-end to file their financial statements. One of the main issues that arises due to this time period is what happens in relation to transactions or events that take place between the reporting period (the period- or year-end) and the date that the financial statements are authorised for issue, which may have a direct (or indirect) impact on the financial statements in question.

Section 32 Events after the Reporting Period deals with such transactions and events and there is also a degree of interaction between Section 32 and that of Section 21 Provisions and Contingencies. This particular chapter will deal with the issues contained in Section 32.

Section 32 is aptly named ‘Events after the Reporting Period’ and this particular Section takes its name from IFRS for SMEs, which is based on IAS 10 Events after the Reporting Period. Accountants and practitioners in the UK and Republic of Ireland will be more familiar with terminology such as ‘post balance sheet events’ and ‘subsequent ...