CERTYNEX IFRS ACADEMY

Zarnovel's reporting date is 31 December 20X5; the financial statements are to be authorised on 15 March 20X6. On 20 February 20X6, a final decision in Zarnovel's own dispute, concerning its 20X4 return, confirms the authority's position. How should the effect of this information be analysed?

Restate the 20X4 financial statements, the year of the return in question.

Apply IAS 10 to determine whether it is an adjusting event for the 20X5 financial statements.

Ignore the information, which is after the reporting date.

Wait until 20X7 to recognise the effect, after payment.