EVENTS AFTER THE REPORTING PERIOD

IAS 10 discuss Events after the Reporting Period contains requirements when an entity should adjust its financial statements for events after the reporting period and the disclosures note that an entity should be given about the date when the financial statements were authorised and about events after the reporting period(the latter being disclosed where material).

December 2003 IAS 10 was reissued and applies to annual periods beginning on or after 1 January 2005.

Event after the reporting period: It is an event, which could be favourable or unfavourable, that occurs between the closing of the reporting period and the date that the financial statements are authorised for issue.

Events after the closing of reporting period may be classified into two types:
1.Adjusting event: Those events that provide further evidence about conditions that existed at the end of reporting period.It is an event after the reporting period that provides further evidence of conditions that existed at the closiing of the reporting period, including an event that indicates that the going concern assumption in relation to the whole or part of the enterprise is not appropriate.

2.Non-adjusting event:It is an event after the reporting period that is indicative of a condition that arose after the closing of the reporting period.

Adjust financial statements for adjusting events - events after the balance sheet date that provides further document of conditions that existed at the closing of the reporting period, including events that detairment that the going concern assumption in relation to the whole or part of the enterprise is not appropriate.  Do not adjust for non-adjusting events - events or conditions that arose after the closing of the reporting period.If an entity discuss dividends after the reporting period, the entity shall not indicate those dividends as a liability at the closing of the reporting period. It is a non-adjusting event.

Going concern assumption issues arising after closing of the reporting period
An entity shall not prepare its financial statements on a going concern assumption basis if management determines after the closing of the reporting period either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so.

Disclosure:Non-adjusting events that should be disclosed if they are of such importance vale that non-disclosure would affect the ability of users to make proper evaluations and decisions. The required disclosure note is  the nature of the event and (b) an estimate of its financial effect or a statement that a reasonable estimate of the effect cannot be made.

A company should be updated disclosures notes that is related to conditions that existed at the closing of the reporting period of ntime to reflect any new messages that it receives after the reporting period about those conditions.

Companies must be disclosed the date when the financial statements were recognised for issue and who gave that authorisation. If the owners or others have the power to amend the financial statements after issuance, the enterprise must disclose that matter.