Fundamental concept
In this session, you'll learn how to identify and classify events that occur after the financial reporting period ends but before the financial statements are authorised for issue.
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In this lesson
- 0:00 Events after the reporting period overview
- 0:21 Understanding the reporting timeline
- 0:44 Definition and key concept explained
- 1:44 Non-adjusting events and characteristics
- 2:01 Adjusting events and predictability
About this lesson
Understanding this distinction is crucial for Financial Reporting (FR) and Strategic Business Reporting (SBR) exams, as it determines whether events require adjustment to the financial statements or disclosure only. You'll explore the timeline between the reporting period end date and authorisation, then master the two key categories: adjusting events, which provide evidence of conditions that existed at year-end and therefore require adjustment to the figures; and non-adjusting events, which indicate conditions arising after year-end and are disclosed by note only. The core principle is predictability—adjusting events should have been foreseeable at year-end, while non-adjusting events are typically unforeseen and cannot be predicted from conditions existing during the period. This foundation underpins your ability to apply IAS 10 correctly in exam scenarios, ensuring you treat post-year-end events accurately and avoid costly marking errors on case studies and objective tests.
Duration: 3m
Transcript
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