IAS 10 – Events After the Reporting Period

1 Events after the reporting period

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.

Two types of events can be identified:

  1. those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
  2. those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).

1.1 Authorizing financial statements to be issued

The process involved in authorising the financial statements for issue will vary depending upon:

  1. the management structure,
  2. statutory requirements; and
  3. procedures followed in preparing and finalising the financial statements.

Approval from Shareholders

In some cases, an entity is required to submit its financial statements to its shareholders for approval after the financial statements have been issued. In such cases, the financial statements are authorised for issue on the date of issue, not the date when shareholders approve the financial statements.

Issued to supervisory body

In some cases, the management of an entity is required to issue its financial statements to a supervisory board (made up solely of non-executives) for approval. In such cases, the financial statements are authorised for issue when the management authorises them for issue to the supervisory board.

Events after the reporting period include all events up to the date when the financial statements are authorised for issue, even if those events occur after the public announcement of profit or of other selected financial information.