*notes

International Accounting Standard 10: Events after the Reporting Period

(IAS 10)
Scope
Applied in the accounting for and disclosure of events after the reporting period.

Objectives
Prescribes when an entity should adjust its financial statement for events after the
reporting period and the disclosures that should be given about the date when the financial
statement were authorized for issue and about the events after the reporting date.

Events after the reporting period

Events, favorable and unfavorable that occur between the end of the reporting period and
the date when the financial statement are authorized for issue.
A. Adjusting Events
Events that occur after the reporting date that provide evidence of conditions that
exist at the end of the reporting period.
B. Non- Adjusting Events
Events that occur after the reporting period that do not provide evidence of
conditions that existed at the end of the reporting period.

Recognition and Measurement

Adjusting Events
An entity shall adjust the amounts recognized in its financial statement and relevant
disclosure to reflect such events
Non-Adjusting Events
An entity shall not adjust the amounts recognized in its financial statement to reflect non-
adjusting events after the reporting period.

Dividends
Entity shall not recognize those dividends that are declared after reporting date as a
liability at the end of the reporting period.

Going Concern
An entity shall not prepare its financial statement on a going concern basis if
management determines after the reporting date that either:
a. It intends to liquidate the entity or to cease trading
 b. B. that it has no realistic alternative but to do so.

Presentation and Measurement

1. Shall disclose the date when financial statement were authorized for issue and who gave that
authorization.
a. If the owner have the power to amend the financial statement after issue, the entity shall
disclose that fact.
b. If the entity receives the condition after the reporting period that existed at the end of the
reporting period
 Shall update disclosure that relate to those conditions
c. An entity needs to update the disclosure in its financial statement to reflect information
received after the reporting period
d. Disclose the materials > non-adjusting events > the nature of the events > an estimate of
its: financial effect or a statement that such an estimate cannot be made.

From the Book Intermediate Accounting 2019 (Vol.1)

By: Valix, C.T.
Peralta, J.F.
Valix, C.A.M.