IAS 10 · Case studies (Step 3 of 5)
Case study
IAS 10 Events after the Reporting Period — wording before IFRS 18Applicable today
Applies to annual periods beginning before January 1, 2027.
Papeteries Lunaret SA (fictitious entity) is finishing its 20X5 statements. Eight events were identified after the reporting date. You classify them and prepare the simple adjustment that results.
Your assignment
Set the review period, classify the eight events, assess the dividend and the market fall, post the entry for event (1), measure its effect and conclude.
Work on this file as you would in practice: read the situation, open the documents, sort the useful information, then carry out the work requested. The solution is revealed once you submit.
Fundamental level: the method, help and references are shown.
Method
File checklist
Document 1
Document 2
Document 2
Document 2
Document 1
3 documents: open each one to read it.
Document 1Minutes
Papeteries Lunaret SA (fictitious entity) has a 31 December 20X5 reporting date. Annual results are announced to the press on 25 February 20X6. The board of directors authorises the statements for issue on 12 March 20X6; the shareholders will approve them on 30 April 20X6.
The figures of the documents, gathered for your work.
| Item | Value | Found in |
|---|---|---|
| Reporting date | December 31 20X5 | |
| Authorisation for issue by the board | March 12 20X6 | |
| Receivable from Merlace | €24,000.00 | |
| Date of the Merlace liquidation | January 15 20X6 | |
| Date of the fire | January 20 20X6 | |
| Date of the dividend proposal | February 10 20X6 |
Not every document matters: identify those that affect the accounting treatment.
Part 1 · Classification · Analysis
Sort each document: does it affect the accounting treatment?
Drag each item into its category, or tap the category under the item.
20X5 closing timetable
Events identified after the reporting date
Sector press review
6 tasks in the order of the file. Calculations, entries and effects on the financial statements are marked; written answers are self-assessed against the solution.
Task 1Analysis
What period must be analysed? Does the announcement of results limit it?
Set out the facts, the question raised, then your analysis.
This answer is not marked automatically: after submitting, you will compare it with the solution.
Task 2Analysis
Classify the eight events.
Set out the facts, the question raised, then your analysis.
This answer is not marked automatically: after submitting, you will compare it with the solution.
Task 3Professional judgement
Do the dividend (4) and the market fall (5) change the 20X5 statements?
Distinguish the case data, the assumption and your judgment.
This answer is not marked automatically: after submitting, you will compare it with the solution.
Task 4Journal entries
Post the adjusting entry for event (1) at 31 December 20X5.
Identify the accounts affected and the direction of each movement; check the balance.
Part 1 · Journal entry · Journal entries
Entry 1 of 1
One line = one account and one side. Add a line if the entry needs more; the balance check updates live.
Line 1
Line 2
Task 5Effects on the financial statements
What is the effect of this entry on the 20X5 statements?
For each financial statement, state the line affected, the direction and the amount.
Part 1 · Classification · Analysis
State the direction of the effect on each financial statement aggregate.
Financial position (balance sheet)
Profit or loss
Other comprehensive income
Equity
Part 2 · Calculation · Analysis
Quantify the effect on the aggregates concerned.
Result: Amount of the effect — Equity
Task 6Conclusion
Write the conclusion.
Write a conclusion that cites the facts and the treatment chosen.
This answer is not marked automatically: after submitting, you will compare it with the solution.
Your working draft for this file: points noted, leads, intermediate calculations.
Saved on this device only; never graded.
Complete every item of the file to submit it (0 / 8).
Document this file
These working papers use the data and results of this case.
Normative references