Events after the reporting period
You'll learn how to classify events that occur between the year-end and when financial statements are authorised for issue, and understand when to adjust prior period figures versus when to disclose only.
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In this lesson
- 0:00 Events after the reporting period overview
- 0:16 Adjusting vs non-adjusting events explained
- 2:08 Common adjusting events and examples
- 4:37 Non-adjusting events and disclosure requirements
- 6:30 Worked example: classifying events and adjusting profit
About this lesson
This video covers IAS 10 and explains the critical distinction between adjusting events (which provide evidence of pre-existing conditions and require adjustment) and non-adjusting events (which arise after year-end and require disclosure only). You'll work through practical examples including customer insolvencies, inventory revaluations, and asset impairments to identify which treatment applies in your financial statements. This topic appears in Financial Reporting (FR), Strategic Business Reporting (SBR), and Advanced Financial Reporting (F2) papers, where you'll encounter questions requiring you to recalculate profit or other figures based on post-balance-sheet events. Understanding this distinction ensures your financial statements reflect all available evidence at the reporting date while maintaining transparency about material post-year-end developments that could affect users' decisions.
Duration: 10m
Transcript
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