IAS 10 Events after the Reporting Period

Scope of IAS 10

IAS 10 covers the accounting for, and disclosure of, events after the reporting period.

Authorization of financial statements for issue

Events after the reporting period are those events that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Therefore, the date of authorization for use is crucial in applying IAS 10. It greatly depends on local law, but most often it is the date when the executive directors sign-off the financial statements which then are published and handed over to authorisation to the governance bodies. See paragraphs IAS 10.4-7 with examples.

Entities should disclose the date when the financial statements were authorised for issue and who gave that authorisation. Additionally, if the financial statements may be amended at a later date (e.g. at the AGM), entities should also disclose this fact (IAS 10.17-18).

Adjusting events are those events that provide evidence of conditions that existed at the end of the reporting period and therefore entities should adjust financial statements to reflect those events. Paragraph IAS 10.9 gives a few examples of adjusting events. Adjusting events are often problematic as they tend to come up when the financial are already drafted, power point presentations prepared, etc.

Non-adjusting events are those events that do not provide evidence of conditions that existed at the end of the reporting period. Paragraph IAS 10.22 gives a few examples of non-adjusting events. Entities do not change the amounts in financial statements, but they need to consider disclosing them (IAS 10.21).

The only instance when a non-adjusting event impacts financial statements (other than by additional disclosure) is a situation where a would-be non adjusting event prevents the management from preparing financial statements on a going concern basis (IAS 10.14-16).


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Excerpts from IFRS Standards come from the Official Journal of the European Union (© European Union, https://eur-lex.europa.eu). The information provided on this website does not constitute professional advice and should not be used as a substitute for consultation with a certified accountant.