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    Pas 10

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    Princess Jullyn Claudio
    This document discusses events after the reporting period and how they are classified and treated in financial statements. It defines events after the reporting period as those occurring between the end of the reporting period and the date the financial statements are authorized for issue. Events are either adjusting, providing evidence of pre-existing conditions, or non-adjusting, indicative of later conditions. It provides examples of adjusting and non-adjusting events and notes that dividends declared after the period are not recognized as liabilities, and going concern assessment cannot consider post-period events.

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    Pas 10

    Uploaded by

    Princess Jullyn Claudio
    45 views11 pages
    This document discusses events after the reporting period and how they are classified and treated in financial statements. It defines events after the reporting period as those occurring between the end of the reporting period and the date the financial statements are authorized for issue. Events are either adjusting, providing evidence of pre-existing conditions, or non-adjusting, indicative of later conditions. It provides examples of adjusting and non-adjusting events and notes that dividends declared after the period are not recognized as liabilities, and going concern assessment cannot consider post-period events.

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    PAS-10

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    This document discusses events after the reporting period and how they are classified and treated in financial statements. It defines events after the reporting period as those occurring between the end of the reporting period and the date the financial statements are authorized for issue. Events are either adjusting, providing evidence of pre-existing conditions, or non-adjusting, indicative of later conditions. It provides examples of adjusting and non-adjusting events and notes that dividends declared after the period are not recognized as liabilities, and going concern assessment cannot consider post-period events.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    45 views11 pages

    Pas 10

    Uploaded by

    Princess Jullyn Claudio
    This document discusses events after the reporting period and how they are classified and treated in financial statements. It defines events after the reporting period as those occurring between the end of the reporting period and the date the financial statements are authorized for issue. Events are either adjusting, providing evidence of pre-existing conditions, or non-adjusting, indicative of later conditions. It provides examples of adjusting and non-adjusting events and notes that dividends declared after the period are not recognized as liabilities, and going concern assessment cannot consider post-period events.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    PAS 10

    EVENTS AFTER THE


    REPORTING
    PERIOD
    Events after the Reporting Period

    Events after the reporting period are


    “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,”
    Two types of events after the
    reporting period
    1. Adjusting events after the reporting period -
    events that provide evidence of conditions that
    existed at the end of the reporting period.

    2. Non-adjusting events after the reporting


    period – events that are indicative of conditions
    that arose after the reporting period.
    Examples of adjusting
    events after the reporting
    1.
    period
    The settlement after the reporting period of a court case
    that confirms that the entity has a present obligation at
    the end of the reporting period.
    2. The receipt of information after the reporting indicating
    that an asset was impaired at the end of the reporting
    period.
    3. The determination after the reporting period of the cost
    of asset purchased, or the proceeds from asset sold,
    4. The determination after the reporting period of
    the amount of profit sharing or bonus payments,
    if the entity had a present legal or constructive
    obligation at the end of the reporting period to
    make such payments.
    5. The discovery of fraud or errors that indicate
    that the financial statements are incorrect.
    Examples of non-adjusting
    events after the reporting
    period
    1. Changes in fair values, foreign exchange rates,
    interest rates or market price after the reporting
    period.
    2. Casualty losses occurring after the reporting period
    but before the financial statements were authorized
    for issue.
    3. Litigation arising solely from events occurring after
    4. Significant commitments or contingent liabilities
    entered after the reporting period
    5. Major ordinary share transactions and potential
    ordinary share transactions after the reporting period.
    6. Major business combination after the reporting
    period.
    7. Announcing, or commencing the implementation of,
    a major restructuring after the reporting period.
    8. Announcing a plan to discontinue an operation
    after the reporting period.
    9. Change in tax rate enacted after the reporting
    period.
    10. Declaration of dividends after the reporting period.
    Dividends

     Dividends are declared after the reporting


    period are not recognized as liability at the
    end of the reporting period.
    Going Concern

     PAS 10 prohibits the preparation of financial


    statements on a going concern basis if
    management determines after the reporting
    period.
    Reference: Conceptual Frameworks and Accounting Standards,
    2019 Edition by Zeus Vernon B. Millan

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