Chapter 4 :

Events after the

reporting period
(IAS 10)
Tăng Thành Minh Xuân

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MATERIALS

“Kế toán tài chính quốc tế 2”, Industrial University

IAS 10

Wiley, 2015, Interpretation and Application of

International Financial Reporting Standards
 LEARNING OBJECTIVES
Knowledge

Skill

Attitude
 OLD LESSON

How should the financial

statement be presented
following IAS 1 ?

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CONTENT
4.1 INTRODUCTION
4.2 OBJECTIVE OF STANDARD
4.3 SCOPE
4.4 DISCUSSION OF DEFINITIONS
 Events after the reporting period
 Adjusting events
What are adjusting events ?
How should adjusting events be treated?
 Nonadjusting events
What are nonadjusting events ?
How should nonadjusting events be treated ?

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4.1 Introduction
IAS 10 “Contigencies and events occurring after
the balance sheet date” was originally issued in
June 1978

IAS 10 “Events After the Balance Sheet Date”

was issued by the IASC in May 1999.

As a result of the changes in terminology made

by IAS 1 in 2007, the title of IAS 10 was
changed to Events after the Reporting Period
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4.2 Objective of standard

The objective of this Standard is :

• To determine the authorization date
• To understand events after the reporting period
• To distinguish the difference between adjusting
event and nonadjusting event
• To adjust and disclose events after the reporting
period

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4.3 Scope

This Standard shall be applied in the accounting for,

and disclosure of, events after the reporting period

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4.4 Key words

MINI GAME
Matching column A with column B

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 A B
1. Adjusting a. Financial statement

2. Nonadjusting
b. transaction
3. Arising
c. events
4. issuing
d. date
5. Providing
e. Evidence
6. Authorization
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4.5 Events after the reporting
period

What are events after the reporting

period ?
Sự kiện sao kỳ báo cáo là gì

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4.5 Events after the reporting
period
(IAS 10.3) Events after the reporting period are
those events, favourable and unfavourable, that
occur between the end of the reporting period
and the date when the financial statements are
authorised for issue

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 4.5 Events after the reporting
period
Start of the FS are authorized
End of the Information
reporting for issue BCTC dc
reporting
Bắt đầu kỳ Kết thúc kỳ bc
phê chuẩn để phát made public
hành
BC

Events after the reporting period

covered by IAS 10
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4.5 Events after the reporting
period

How is Authorization date determined?

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4.4 Events after the reporting
period

Authorization date

-> depending upon the management

structure, statutory requirements and
procedures followed in preparing and
finalising the financial statements.

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4.5 Events after the reporting
period
Authorization date

When an entity is required to submit its

financial statements to its shareholders
(or supervisory board…) for approval
after they have already been issued
-> Authorization date ?
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Ex 1 : On Feb 28th, 2017, the management of an
entity completes draft financial statements for
the year to Dec 31st, 2016. On March 18th, 2017,
the board of directors approves them for issue.
On May 15th, 2017, the shareholders approve the
financial statements at their annual meeting
-> Authorization date ? Ngày phê chuẩn phát hành
Ngày 18/03

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4.4 Events after the reporting
period
Two types of events after the reporting
period are distinguished by the standard.
These are, respectively, “adjusting
events after the reporting period” and
“nonadjusting events after the reporting
period.”

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4.4 Recognition and measurement

What are Adjusting events ?

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4.4 Events after the reporting
period
Adjusting events

Adjusting events are those post–reporting

period events that provide evidence
of conditions that actually existed at the
end of the reporting period, albeit they
were not known at the time
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4.4 Recognition and measurement

How should Adjusting events be treated

?

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4.4 Recognition and measurement
Adjusting events

Adjusting events : an entity should adjust

the amounts recognised in its financial
statements, or to recognise items that were
not previously recognised.

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Ex 2 : Company Y had account receivable
khoảng phải thu from customer A which still
hasn’t expired was $60,000 in financial
statement on Dec 31st, 2016. On Jan 31st, 2017,
before the authorization date, bankruptcy phá
sản of customer A was announced. Customer A
could pay 30% of debt. (The company Y didn’t
record the allowance dự phòngvfor the debt)
a) Is this adjusting event có phải là sự kiện điều
chỉnh k ? Đúng là sk điều chỉnh.
b) How should this event be treated ?

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Ex 2 : The event after reporting period:
Bankruptcy of custumer A. This is adjusting
envent because this event influences on account
receivable of customer A in reporting period
2016.

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Ex 2: b) Dr Uncollectible expense : $42,000
Cr Allowance for uncollectible account: $42,000

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2017, a competitor settled a claim by paying the
entity $600,000 .
a) Is this adjusting event ?
b) How should this event be treated?

A) the event after reporting period is a

comoetitor agreed to settle a claim by paying the
entity $600,000
This is adjusting event because it provides
evidence about the result of lawsuit that the
entity sued competitor in 2016
B) Dr Account reeeceivable : $600,000
Cr other income: $600,000
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Ex 3:

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Ex 3 :

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Ex 4 : On March 1st, 2017, an entity’s financial
statements for the year ended Dec 31 st, 2016
were authorised for issue. The entity sued the
competitor in 2016. On Feb 1st, 2017, the
competitor decided to appeal to higher court, so
it is not clear about the result of lawsuit.
a) Is this adjusting event ?
b) How should this event be treated?

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Ex 4:

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4.4 Events after the reporting
period
Nonadjusting events

Nonadjusting events are those post–

reporting period events that are indicative
of conditions that arose after the
reporting period.

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Ex 5 : On 1 March 2017, an entity’s financial
statements for the year ended 31 December
2016 were authorised for issue. On 1 January
2017, there are a decline in the market value .
of investments .
a) What is the event after reporting period in this
example ?
b) Is this adjusting event ?

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4.4 Recognition and measurement
Nonadjusting events

If nonadjusting events are such significance,

disclosure should be made, the entity should
disclose the nature of the event and an
estimate of its financial effect or a statement
that such an estimate cannot be made.

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Ex 6 : On 28 February 2017 an entity’s financial
statement for the year ended 31 December 2016
was authorized for issue. On 20 February 2017,
a fire destroyed one of the entity’s paper
manufacturing plants which had a carrying
amount of $2,000,000 at 31 December 2016.
The entity does not have insurrance against fire
damage. The entity remains a going concern.
a) What is the event after reporting period in this
example ?
b) Is this adjusting event ?

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Ex 6:

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SUMARY& EXERCISES

Students understand :What are events after the

reporting period ? How is authorization date
determined ? What are adjusting events ?
Know how to adjust or recoignise Adjusting
events.

Please search some examples about adjusting

events and read book about nonadjusting events at
home before you go to class next period
Thank you

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