IAS 10 Events after The Reporting Period

Events after the reporting period is any event that occurs between the end of reporting period and the date that FS are authorized for issue – the date that management approves the account for issue. This event identified and classified as :
a. Adjusting event
If the conditions giving rise to the event existed at the end of the reporting period.
Examples :
 Court case
 Bankruptcy of customer
 Sale of inventories below NRV
 Proceeds of asset sale or purchase determined
 Bonused determined
 Fraud or errors
b. Non-adjusting event
If the conditions giving rise to the event arose after at the end of the reporting period. If a non – adjusting event is material, the entity should disclose in FS :
 The nature of the event
 An estimate of the financial effect or statement that estimation cannot be made.
Examples :
 Disposal of a subsidiary after the end of the reporting period
 Disposal of a fixed asset after the end of the reporting period
 Announcement restructuring after the end of the reporting period
 Ordinary share transactions after the end of the reporting period
 Fluctuation in exchange rates after the end of the reporting period
 Litigation on event after the end of the reporting period
 Fire destroying a production plant after the end of the reporting period
 Dividend declared after the end of the reporting period
If the going concern of the entity raise in questions due to event after the reporting date, the FS cannot be prepared on a going concern basis – IAS 1 Presentation of Financial Statement.
Date that FS are authorized for issue :
 31 December (Year-end)
 20 January (When the financial statements were completed)
 28 January (Meeting of the Board of Directors to approve the financial statements)
 20 February (When the financial statements are sent to the shareholder)
 15 March (Date of the Annual General Meeting)
 Also, the government’s Supervisory Board can amend the financial statements up to 14 days after the Annual General Meeting.
 Which date do I need to disclose ? 28 January with disclosure that Government’s Supervisory Board can amend the FS.