International Accounting Standard 10 Events after the Reporting Period

1、International Accounting Standard 10 Events after the Reporting PeriodIAS 10International Accounting Standard 10Events after the Reporting PeriodThis version includes amendments resulting from IFRSs issued up to 17 January 2008.IAS 10 Events After the Balance Sheet Date was issued by the Internation

2、al AccountingStandards Committee in May 1999. It replaced those parts of IAS 10 Contingencies and EventsOccurring After the Balance Sheet Date (originally issued June 1978, reformatted 1994) that werenot replaced by IAS 37 (issued September 1998).In April 2001 the International Accounting Standards

3、Board (IASB) resolved that allStandards and Interpretations issued under previous Constitutions continued to beapplicable unless and until they were amended or withdrawn.In December 2003 the IASB issued a revised IAS 10 with a modified titleEvents after theBalance Sheet Date. IAS 10 was amended by t

4、he following IFRSs:?IFRS 5 Non-Current Assets Held for Sale and Discontinued Operations (issued March 2004).?IAS 1 Presentation of Financial Statements (revised September 2007)As a result of the changes in terminology made by IAS 1 in 2007, the title of IAS 10 waschanged to Events after the Reportin

5、g Period.The following Interpretation refers to IAS 10:?SIC-7 Introduction of the Euro (issued May 1998 and subsequently amended).? IASCF1035IAS 10CONTENTSparagraphsINTRODUCTIONIN1IN4INTERNATIONAL ACCOUNTING STANDARD 10EVENTS AFTER THE REPORTING PERIODOBJECTIVE1SCOPE2DEFINITIONS37RECOGNITION AND MEA

6、SUREMENT813Adjusting events after the reporting period89Non-adjusting events after the reporting period1011Dividends1213GOING CONCERN1416DISCLOSURE1722Date of authorisation for issue1718Updating disclosure about conditions at the end of the reporting period1920Non-adjusting events after the reportin

7、g period2122EFFECTIVE DATE23WITHDRAWAL OF IAS 10 (REVISED 1999)24APPENDIXAmendments to other pronouncementsAPPROVAL OF IAS 10 BY THE BOARDBASIS FOR CONCLUSIONS?1036 IASCFIAS 10International Accounting Standard 10 Events after the Reporting Period (IAS 10) is set outin paragraphs 124 and the Appendix

8、. All the paragraphs have equal authority butretain the IASC format of the Standard when it was adopted by the IASB. IAS 10 shouldbe read in the context of its objective and the Basis for Conclusions, the Preface toInternational Financial Reporting Standards and the Framework for the Preparation and

9、Presentation of Financial Statements. IAS 8 Accounting Policies, Changes in Accounting Estimatesand Errors provides a basis for selecting and applying accounting policies in the absenceof explicit guidance. ? IASCF1037IAS 10Introduction*IN1International Accounting Standard 10 Events after the Report

10、ing Period (IAS 10)replaces IAS 10 Events After the Balance Sheet Date (revised in 1999) and should beapplied for annual periods beginning on or after 1 January 2005. Earlierapplication is encouraged.Reasons for revising IAS 10IN2The International Accounting Standards Board developed this revised IA

11、S 10 aspart of its project on Improvements to International Accounting Standards.Theproject was undertaken in the light of queries and criticisms raised inrelation to the Standards by securities regulators, professional accountants andother interested parties. The objectives of the project were to r

12、educe or eliminatealternatives, redundancies and conflicts within the Standards, to deal with someconvergence issues and to make other improvements. IN3For IAS 10 the Boards main objective was a limited clarification of the accountingfor dividends declared after the reporting period. The Board did n

13、ot reconsiderthe fundamental approach to the accounting for events after the reporting periodcontained in IAS 10.The main changesIN4The main change from the previous version of IAS 10 was a limited clarificationof paragraphs 12 and 13 (paragraphs 11 and 12 of the previous version of IAS 10).As revis

14、ed, those paragraphs state that if an entity declares dividends after thereporting period, the entity shall not recognise those dividends as a liability at theend of the reporting period. *In September 2007 the IASB amended the title of IAS 10 from Events after the Balance Sheet Date toEvents after

15、the Reporting Period as a consequence of the revision of IAS 1 Presentation of FinancialStatements in 2007.?1038 IASCFIAS 10International Accounting Standard 10Events after the Reporting PeriodObjective1The objective of this Standard is to prescribe: (a)when an entity should adjust its financial sta

16、tements for events after thereporting period; and(b)the disclosures that an entity should give about the date when thefinancial statements were authorised for issue and about events after thereporting period.The Standard also requires that an entity should not prepare its financialstatements on a go

17、ing concern basis if events after the reporting period indicatethat the going concern assumption is not appropriate.Scope2This Standard shall be applied in the accounting for, and disclosure of, eventsafter the reporting period.Definitions3The following terms are used in this Standard with the meani

18、ngs specified: Events after the reporting period are those events, favourable and unfavourable, thatoccur between the end of the reporting period and the date when the financialstatements are authorised for issue. Two types of events can be identified: (a)those that provide evidence of conditions th

19、at existed at the end of thereporting period (adjusting events after the reporting period); and(b)those that are indicative of conditions that arose after the reporting period(non-adjusting events after the reporting period).4The process involved in authorising the financial statements for issue wil

20、l varydepending upon the management structure, statutory requirements andprocedures followed in preparing and finalising the financial statements.? IASCF1039IAS 105In some cases, an entity is required to submit its financial statements to itsshareholders for approval after the financial statements h

21、ave been issued. In suchcases, the financial statements are authorised for issue on the date of issue, notthe date when shareholders approve the financial statements. ExampleThe management of an entity completes draft financial statements for the year to 31 December 20X1 on 28 February 20X2. On 18 M

22、arch 20X2, the board of directors reviews the financial statements and authorises them for issue. Theentity announces its profit and selected other financial information on 19March 20X2. The financial statements are made available to shareholders and others on 1 April 20X2. The shareholders approve

23、the financial statements at their annual meeting on 15 May 20X2 and the approved financial statements are then filed with a regulatory body on 17 May 20X2.The financial statements are authorised for issue on 18 March 20X2 (date of board authorisation for issue).6In some cases, the management of an e

24、ntity is required to issue its financialstatements to a supervisory board (made up solely of non-executives) for approval.In such cases, the financial statements are authorised for issue when themanagement authorises them for issue to the supervisory board. ExampleOn 18 March 20X2, the management of

25、 an entity authorises financial statements for issue to its supervisory board. The supervisory board is made up solely of non-executives and may include representatives of employees and other outside interests. The supervisory board approves the financial statements on 26 March 20X2. The financial s

26、tatements are made available to shareholders and others on 1 April 20X2. The shareholders approve the financial statements at their annual meeting on 15 May 20X2 and the financial statements are then filed with a regulatory body on 17 May 20X2.The financial statements are authorised for issue on 18

27、March 20X2 (date of management authorisation for issue to the supervisory board).7Events after the reporting period include all events up to the date when thefinancial statements are authorised for issue, even if those events occur after thepublic announcement of profit or of other selected financia

28、l information.Recognition and measurementAdjusting events after the reporting period8An entity shall adjust the amounts recognised in its financial statements to reflectadjusting events after the reporting period. ?1040 IASCFIAS 109The following are examples of adjusting events after the reporting p

29、eriod thatrequire an entity to adjust the amounts recognised in its financial statements, orto recognise items that were not previously recognised: (a)the settlement after the reporting period of a court case that confirms thatthe entity had a present obligation at the end of the reporting period.Th

30、eentity adjusts any previously recognised provision related to this courtcase in accordance with IAS 37 Provisions, Contingent Liabilities and ContingentAssets or recognises a new provision. The entity does not merely disclose acontingent liability because the settlement provides additional evidence

31、that would be considered in accordance with paragraph 16 of IAS 37.(b)the receipt of information after the reporting period indicating that anasset was impaired at the end of the reporting period, or that the amountof a previously recognised impairment loss for that asset needs to beadjusted. For ex

32、ample:(i)the bankruptcy of a customer that occurs after the reporting periodusually confirms that a loss existed at the end of the reporting periodon a trade receivable and that the entity needs to adjust the carryingamount of the trade receivable; and(ii)the sale of inventories after the reporting

33、period may give evidenceabout their net realisable value at the end of the reporting period.(c)the determination after the reporting period of the cost of assetspurchased, or the proceeds from assets sold, before the end of the reportingperiod.(d)the determination after the reporting period of the a

34、mount ofprofit-sharing or bonus payments, if the entity had a present legal orconstructive obligation at the end of the reporting period to make suchpayments as a result of events before that date (see IAS 19 Employee Benefits).(e)the discovery of fraud or errors that show that the financial stateme

35、nts areincorrect.Non-adjusting events after the reporting period10An entity shall not adjust the amounts recognised in its financial statements toreflect non-adjusting events after the reporting period. 11An example of a non-adjusting event after the reporting period is a decline inmarket value of i

36、nvestments between the end of the reporting period and the datewhen the financial statements are authorised for issue. The decline in marketvalue does not normally relate to the condition of the investments at the end ofthe reporting period, but reflects circumstances that have arisen subsequently.T

37、herefore, an entity does not adjust the amounts recognised in its financialstatements for the investments. Similarly, the entity does not update theamounts disclosed for the investments as at the end of the reporting period,although it may need to give additional disclosure under paragraph 21.? IASC

38、F1041IAS 10Dividends12If an entity declares dividends to holders of equity instruments (as defined inIAS32 Financial Instruments: Presentation) after the reporting period, the entityshall not recognise those dividends as a liability at the end of the reportingperiod. 13If dividends are declared (ie

39、the dividends are appropriately authorised and nolonger at the discretion of the entity) after the reporting period but before thefinancial statements are authorised for issue, the dividends are not recognised asa liability at the end of the reporting period because they do not meet the criteriaof a

40、 present obligation in IAS 37. Such dividends are disclosed in the notes inaccordance with IAS 1 Presentation of Financial Statements. Going concern14An entity shall not prepare its financial statements on a going concern basis ifmanagement determines after the reporting period either that it intend

41、s toliquidate the entity or to cease trading, or that it has no realistic alternative butto do so. 15Deterioration in operating results and financial position after the reportingperiod may indicate a need to consider whether the going concern assumption isstill appropriate. If the going concern assu

42、mption is no longer appropriate, theeffect is so pervasive that this Standard requires a fundamental change in thebasis of accounting, rather than an adjustment to the amounts recognised withinthe original basis of accounting.16IAS 1 specifies required disclosures if: (a)the financial statements are

43、 not prepared on a going concern basis; or(b)management is aware of material uncertainties related to events orconditions that may cast significant doubt upon the entitys ability tocontinue as a going concern. The events or conditions requiring disclosuremay arise after the reporting period.Disclosu

44、reDate of authorisation for issue17An entity shall disclose the date when the financial statements were authorisedfor issue and who gave that authorisation. If the entitys owners or others havethe power to amend the financial statements after issue, the entity shall disclosethat fact. 18It is import

45、ant for users to know when the financial statements were authorisedfor issue, because the financial statements do not reflect events after this date.?1042 IASCFIAS 10Updating disclosure about conditions at the end of the reporting period19If an entity receives information after the reporting period

46、about conditions thatexisted at the end of the reporting period, it shall update disclosures that relateto those conditions, in the light of the new information. 20In some cases, an entity needs to update the disclosures in its financial statementsto reflect information received after the reporting

47、period, even when theinformation does not affect the amounts that it recognises in its financialstatements. One example of the need to update disclosures is when evidencebecomes available after the reporting period about a contingent liability thatexisted at the end of the reporting period. In addit

48、ion to considering whether itshould recognise or change a provision under IAS 37, an entity updates itsdisclosures about the contingent liability in the light of that evidence.Non-adjusting events after the reporting period21If non-adjusting events after the reporting period are material, non-disclo

49、surecould influence the economic decisions that users make on the basis of thefinancial statements. Accordingly, an entity shall disclose the following for eachmaterial category of non-adjusting event after the reporting period: (a)the nature of the event; and(b)an estimate of its financial effect,

50、or a statement that such an estimatecannot be made.22The following are examples of non-adjusting events after the reporting periodthat would generally result in disclosure: (a)a major business combination after the reporting period (IFRS 3 BusinessCombinations requires specific disclosures in such c

51、ases) or disposing of amajor subsidiary; (b)announcing a plan to discontinue an operation;(c)major purchases of assets, classification of assets as held for sale inaccordance with IFRS 5 Non-current Assets Held for Sale and DiscontinuedOperations, other disposals of assets, or expropriation of major

52、 assets bygovernment;(d)the destruction of a major production plant by a fire after the reportingperiod;(e)announcing, or commencing the implementation of, a major restructuring(see IAS 37);(f)major ordinary share transactions and potential ordinary sharetransactions after the reporting period (IAS

53、33 Earnings per Share requires anentity to disclose a description of such transactions, other than when suchtransactions involve capitalisation or bonus issues, share splits or reverseshare splits all of which are required to be adjusted under IAS 33);? IASCF1043IAS 10(g)abnormally large changes aft

54、er the reporting period in asset prices orforeign exchange rates;(h)changes in tax rates or tax laws enacted or announced after the reportingperiod that have a significant effect on current and deferred tax assets andliabilities (see IAS 12 Income Taxes);(i)entering into significant commitments or c

55、ontingent liabilities, forexample, by issuing significant guarantees; and(j)commencing major litigation arising solely out of events that occurredafter the reporting period.Effective date23An entity shall apply this Standard for annual periods beginning on or after1January 2005. Earlier application

56、is encouraged. If an entity applies thisStandard for a period beginning before 1 January 2005, it shall disclose that fact.Withdrawal of IAS 10 (revised 1999)24This Standard supersedes IAS 10 Events After the Balance Sheet Date (revised in 1999).?1044 IASCFIAS 10AppendixAmendments to other pronounce

57、mentsThe amendments in this appendix shall be applied for annual periods beginning on or after1January2005. If an entity applies this Standard for an earlier period, these amendments shall beapplied for that earlier period.* * * * *The amendments contained in this appendix when this Standard was rev

58、ised in 2003 have beenincorporated into the relevant IFRSs published in this volume. ? IASCF1045IAS 10Approval of IAS 10 by the BoardInternational Accounting Standard 10 Events after the Balance Sheet Date was approved forissue by the fourteen members of the International Accounting Standards Board.

59、Sir David TweedieChairmanThomas E JonesVice-ChairmanMary E BarthHans-Georg BrunsAnthony T CopeRobert P GarnettGilbert GlardJames J LeisenringWarren J McGregorPatricia L OMalleyHarry K SchmidJohn T SmithGeoffrey WhittingtonTatsumi Yamada?1046 IASCFIAS 10 BCBasis for Conclusions on*IAS 10 Events after the Reporting PeriodThis Basis for Conclusions accompanies, but is not part of, IAS 10.IntroductionBC1This Basis for Conclusions summarises the International Accounting Sta