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PAS 10 Events After The Reporting Period

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69 views9 pages

PAS 10 Events After The Reporting Period

credits to the author

Uploaded by

Elnathan Gabuyo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lesson 4

PAS 10
EVENTS AFTER THE
REPORTING PERIOD

MIKKAELLA ANN BLANKAS, CPA, MBA, CLSSYB


01 Events after the reporting period
Types of Events after the reporting
02 period

03 Examples of Adjusting Events

04 Examples of Non-Adjusting Events

05 Knowledge Check
EVENTS AFTER THE REPORTING PERIOD
Events, favorable or unfavorable, that occur between the end of the
reporting period and the date that the financial statements are
authorized for issue.

December 31, 2021 April 15, 2021

Events after the reporting period

End of the Date FSs are


reporting authorized
period for issue
TYPES OF EVENTS AFTER THE REPORTING PERIOD

Adjusting events after Non-adjusting events


the reporting period after the reporting period
- Those that provide - Those that are
evidence of conditions indicative of conditions
that existed at the end of that arose after the
the reporting period reporting period
EXAMPLES OF ADJUSTING EVENTS
- Settlement after the reporting period of a court case that confirms that the
entity has a present obligation at the end of the reporting period

- The receipt of information after the reporting period indicating that an asset
was impaired at the end of the reporting period.
a. bankruptcy of a customer that occurs after the reporting period
b. sale of inventories after the reporting period

- The determination after the reporting period of the cost of the asset purchased
or the proceeds from asset sold, before the end of the reporting period

- The discovery of fraud or errors that indicate that the financial statements are
incorrect.
EXAMPLES OF NON-ADJUSTING EVENTS
- Changes in fair values, foreign exchange rates, interest rates or market prices
after the reporting period

- Casualty losses that occur after the reporting period but before the financial
statements are authorized for issue

- Litigation arising solely from events occurring after the reporting period

- Major ordinary share transactions and potential ordinary share transactions


after the reporting period

- Major business combination after the reporting period

- Announcing a plan to discontinue an operation after the reporting period

- Declaration of dividends after the reporting period


KNOWLEDGE CHECK
1. Chuchu Co. completes the draft of its December 31, 2021 year-end financial statements on
January 31, 2022. On February 5, 2022, the board of directors reviews the financial statements and
authorizes them for issue. The entity announces its profit and selected other financial information on
February 23, 2022. The financial statements are made available to shareholders and others on
March 1, 2022. The shareholders approve the financial statements at their annual meeting on March
18, 2022 and the approved financial statements are then filed with a regulatory body on April 1,
2022. Events after the reporting period are those occurring
a. From December 31, 2021 to February 5, 2022
b. From January 1, 2022 to February 5, 2022
c. From January 1, 2022 to February 23, 2022
d. From January 1, 2022 to March 18, 2022

2. These are events that are indicative of conditions that arose after the reporting period.
a. Events after the reporting period
b. Non-adjusting events
c. Adjusting events
d. All of these
KNOWLEDGE CHECK
3. Chuchu Co. recognized a provision for a pending litigation amounting to P50,000 on December
31, 2021 (end of current reporting period). This amount is reflected in Chuchu’s reported profit of
P600,000 for the year 2021. Shortly after December 31, 2021 but before the financial statements were
authorized for issue, the litigation is settled for P40,000. The correct profit in 2021 is
a. 600,000
b. 610,000
c. 640,000
d. 590,000

4. Which of the following is an example of an adjusting event?


a. Major business combination after the reporting period
b. A building is totally razed by fire after the reporting period
c. Sale of inventories after the reporting period that gives evidence to their net realizable value at
the end of the reporting period
d. Issuance of shares of stocks after the reporting period
THANK YOU!!!

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