IAS 10 – Events after Reporting

Date Nufail Naleem

Exam Focus
This Standard is generally used in the examination for reference, in a
Question, in Simple this is a standard where you can support the
answer
Overview

In Real Life companies don’t publish the Financial Statement next day after the year

end Example if 31.12.2020 the financial Year end they will not produce it 01.01.2021
 Why? Audit process, may generally take time, since the auditors will check the
source documents and raise
questions on accounting judgements
and Errors

Therefore IAS 10 has been introduced with

the objective of providing the companies to
adjust the financial statements during this
period
Illustration
No Adjustment Can
be Made

01.01.2020
31.12.2020 31.03.2021
Financial Year
 - Fire Insurance
Audit Period
Bad Debt

Adjustment
Bad Debt Recovered

Other Example
When Making Decisions
Always consider the current period, with the financial
year
- Fair Value Valuation
end to make decision