Ias 10

Ias 10

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  IAS 10 Events afterthe Reporting Period By:- Yohannes Negatu (ACCA,DipIFR,Cert IPSAS,Cert BV)
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  Overview OBJECTIVE SCOPE DEFINITIONS RECOGNITION AND MEASUREMENT Adjustingevents after the reporting period Non-adjusting events after the reporting period Dividends DISCLOSURE Date of authorization for issue Updating disclosure about conditions at the end of the reporting period Non-adjusting events after the reporting period
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  OBJECTIVE  To determinewhether the financial statement should adjust  To prescribe the disclosure requirement
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  SCOPE The Standard shallbe applied in the accounting for, and disclosure of, events after the reporting period.
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  DEFINITIONS Events after thereporting 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 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).
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  RECOGNITION AND MEASUREMENT Adjustingevents after the reporting period An entity shall adjust the amounts recognized in its financial statements to reflect adjusting events after the reporting period. examples of adjusting events occurs at the end of the reporting period :- (a) a court case that confirms that the entity had a present obligation (b) the receipt of information after the reporting period indicating that an asset was impaired
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  continued (c) the determinationof the cost of assets. (d) the determination of the amount of profit-sharing or bonus payments. (e) the discovery of fraud or errors.
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  continued Non-adjusting events afterthe reporting period An entity shall not adjust the amounts recognized in its financial statements to reflect non-adjusting events after the reporting period.  If the event is material disclose it.
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  continued  examples ofnon-adjusting events after the reporting period:- (a) a major business combination (b) announcing a plan to discontinue an operation (c) major purchases of assets, classification of asset under IFRS 5 (d) the destruction of a major production plant by a Fire (e) announcing, or commencing a major restructuring (f) changes in tax rates or tax laws
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  Dividends If dividends aredeclared after the reporting period but before the financial statements are authorized for issue, the dividends are not recognized as a liability at the end of the reporting period because no obligation exists at that time
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  DISCLOSURE The following shouldbe disclosed (a) Date of authorization for issue (b) The nature of the event (c) An estimate of its financial effect
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  Thank You
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  Questions and Discussion