Objective
The objective of this Standard is to prescribe:
- when an entity should adjust its financial statements for events after the reporting period; and
- the disclosures that an entity should give about the date when the financial statements were authorised for issue and about events after the reporting period.
Scope
This Standard shall be applied in the accounting for, and disclosure of, events after the reporting period.
Definitions
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 authorised for issue. Two types of events can be identified:
- those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and
- those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period).
Recognition and measurement
An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting period.
Disclosure
An entity shall disclose the date when the financial statements were authorised for issue and who gave that authorisation. If the entityβs owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact.
If an entity receives information after the reporting period about conditions that existed at the end of the reporting period, it shall update disclosures that relate to those conditions, in the light of the new information.