1. Events After the Reporting Period: IAS 10
Wiecek and Young
IFRS Primer
Chapter 22

2. Events After the Reporting Period
Related standards
IAS 10
Current GAAP comparisons
IFRS financial statement disclosures
Looking ahead
End-of-chapter practice

3. Related Standards
SAS 1 Codification of Auditing Standards and Procedures
SEC staff pronouncements

4. Related Standards
IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
IAS 36 Impairment of Assets
IAS 37 Provisions, Contingent Liabilities and Contingent Assets

5. IAS 10 – Overview Objective and scope Recognition and measurement
Disclosure

6. IAS 10 – Objective and Scope
This standard assists in the determination of when to recognize transactions that occur after the reporting period
Furthermore, it dictates when additional disclosures should be made regarding these events
Events after the reporting period are defined as follows:
. . . those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorized for issue

7. IAS 10 – Objective and Scope
Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period) and
(b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period)
Thus, transactions that occur after year end are divided into two types

8. IAS 10 – Recognition and Measurement
Adjusting events are recognized in the statements of financial position and profit or loss if they occur prior to the statements being authorized

9. IAS 10 – Recognition and Measurement
Determining when the statements are authorized is a matter of judgment but depends on:
the structure of management
statutory requirements, and
an entity’s governance and procedures
For example: if the board of directors must formally approve the financial statements before issue, then this is the point that divides the transactions between those recognized this year and those that are not

10. IAS 10 – Recognition and Measurement

11. IAS 10 – Recognition and Measurement

12. IAS 10 – Recognition and Measurement

13. IAS 10 – Disclosure
The following disclosures are required to be presented in the financial statements:
• The date when the statements were authorized, including who gave the authorization
• Where adjusting events occur, related disclosures should be updated, as well; and
• Where non-adjusting events occur and are material, the nature of the event and an estimate of its financial effect (or a statement that the financial effect cannot be determined)

14. Current GAAP Comparisons
Page 50 of 164 of

15. IFRS Financial Statement Disclosures
Royal Dutch Shell
financial information/reports/2007/2007_annual_report.pdf
Post-Balance Sheet Events page 165 of 224
L’Oreal
rapport2007/pdf/2007_Full_Annual_Report.pdf
Post-Balance Sheet Events page 249 of 295

16. Looking Ahead IASB currently does not have this topic on its agenda
However, it is part of the Memorandum of Understanding between IASB and FASB and is on the agenda for short-term convergence
FASB is working on incorporating guidance provided in auditing standards (AICPA) into U.S. GAAP (codifying existing standards)
In addition, FASB is looking at minor differences between IFRSs and U.S. GAAP to see if they can be eliminated

17. Looking Ahead
There are two differences between IFRS and U.S. GAAP that will not be addressed in the short term
These relate to the following:
• Refinancing of short-term obligations and
• Curing breaches of borrowing covenants

18. End-of-Chapter Practice

19. End-of-Chapter Practice

20. End-of-Chapter Practice

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