Please provide summary on Ind AS 10 - Events after the Reporting Period
Please provide summary on Ind AS 10 - Events after the Reporting Period The objective of this Standard is to prescribe: (a) When an entity should adjust its financial statements for events after the reporting period; and (b) the disclosures that an entity should give about the date when the financial statements were approved for issue and about events after the reporting period. The Standard also requires that an entity should not prepare its financial statements on a going concern basis if events after the reporting period indicate that the going concern assumption is not appropriate. This Standard shall be applied in the accounting for, and disclosure of, 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 approved by the Board of Directors in case of a company, and, by the corresponding approving authority in case of any other entity 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).
Dear Friend > Ind AS 10 - Events after the Reporting Period It is not generally practicable for preparers to finalise financial statements without a period of time elapsing between the balance sheet date and the date on which the financial statements are approved for issue. The question therefore arises whether events occurring between the balance sheet date and the date of approval (that is, events after the reporting period) should be reflected in the financial statements. Events after the reporting period are either adjusting events or non-adjusting events. Adjusting events provide further evidence of conditions that existed at the balance sheet date, for example, determining after the year end the consideration for assets sold before the year end. Non-adjusting events relate to conditions that arose after the balance sheet date–for example, announcing a plan to discontinue an operation after the year end. The carrying amounts of assets and liabilities at the balance sheet date are adjusted only for adjusting events or events that indicate that the going-concern assumption in relation to the whole entity is not appropriate. Significant non-adjusting post-balance-sheet events, such as the issue of shares or major business combinations, are disclosed. Dividends proposed or declared after the balance sheet date but before the financial statements have been approved for issue are not recognised as a liability at the balance sheet date. Details of these dividends are, however, disclosed. An entity discloses the date on which the financial statements were approved for issue and the persons approving the issue and, where necessary, the fact that the owners or other persons have the ability to amend the financial statements after issue. Thanks