IPSAS Explained: A Summary of International Public Sector Accounting Standards, 2nd Edition

IPSAS 14: Events after the Reporting Date

Objective

The objective of IPSAS 14 is to prescribe:

a) When an entity should adjust its financial statements for events after the reporting date

b) The disclosures that an entity should give about the date when the financial statements were authorized for issue and about events after the reporting date

The standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting date indicate that the going concern assumption is not appropriate (IPSAS 14.1).

The IFRS on which the IPSAS is based

IAS 10, Events after the Balance Sheet Date

Content

Principal definitions

Events after the reporting date are those events that occur between the reporting date and the date when the financial statements are authorized for issue. These events can be favorable and unfavorable for an entity.

Reporting date means the date of the last day of the reporting period to which the financial statements relate.

IPSAS 14.5 distinguishes between two types of events:

a) Events after the reporting date that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date)

b) Events after the reporting date that are indicative of conditions that arose after the balance sheet date (non-adjusting events after the reporting date)

In order to determine which events satisfy the definition of events after the reporting date, it is necessary to identify both ...