IAS 10Chapter 3Lesson 1
Adjusting events
Step 1 of 9Learning objectives
Go deeper+1 point of attention
When a subsequent event sheds light on a condition that existed at the reporting date, the entity adjusts the amounts recognised: a provision confirmed by a judgement, an impaired receivable revealed by a bankruptcy, net realisable value revealed by a sale, a cost or price determined after the reporting date, bonuses due for the year, a fraud or error discovered.
28 minNot started
Learning objectives
- Identify adjusting events.
- Calculate the adjustment to the amounts recognised, including the tax effect.
- Record the adjusting entries at the reporting date.
- Analyse an ambiguous event to determine whether the condition existed at the reporting date.