Wiley IFRS: Practical Implementation Guide and Workbook, 3rd Edition

Chapter 7

EVENTS AFTER THE REPORTING PERIOD (IAS 10)

BACKGROUND AND INTRODUCTION

The end of the reporting period is the pivotal date at which the financial position of an entity is determined and reported. Thus, events that occur up to that date are critical in arriving at an entity’s financial results and the financial position. However, sometimes events occurring after the reporting period may provide additional information about events that occurred before and up to the end of the reporting period. This information may have an impact on the financial results and the financial position of the entity. It is imperative that those post-reporting period events up to a certain “cut-off date” (discussed later and referred to as the authorization date) be taken into account in preparing the financial statements for the year ended and at the end of the reporting period.

Additionally, certain events that occur after the end of the reporting period might not affect the figures reported in the financial statements but may warrant disclosure in footnotes to the financial statements. Informing users of financial statements about such post – reporting period events through footnote disclosures helps them make informed decisions with respect to the entity, keeping in mind the impact these post – reporting period events may have on the financial position of the entity at the end of the reporting period.

SCOPE

IAS 10, Events after the Reporting Period, provides guidance on accounting and ...