HKAS 10 Events after the Reporting Period

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Definitions

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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: (HKAS 10.3)

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• 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).

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Recognition and Measurement

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Adjusting events after the reporting period

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An entity shall adjust the amounts recognised in its financial statements to reflect adjusting events after the reporting period. (HKAS 10.8)

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Non-adjusting events after the reporting period

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An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting events after the reporting period. (HKAS 10.10)

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Disclosure

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Non-adjusting events after the reporting period

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If non-adjusting events after the reporting period are material, non-disclosure could influence the economic decisions of users taken that users make on the basis of the financial statements. Accordingly, an entity shall disclose the following for each material category of non-adjusting event after the reporting period: (HKAS 10.21)

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• the nature of the event; and

• ​an estimate of its financial effect, or a statement that such an estimate cannot be made.