The window of events after the reporting period

Learning objectives

• Identify the period covered by IAS 10 (from the end of the reporting period to the date the financial statements are authorised for issue), including after the public announcement of profit.L1, L2
• Distinguish an adjusting event (condition that existed at the end of the reporting period) from a non-adjusting event (condition that arose afterwards).L1, L2

Normative references

• IAS 10 §3Events 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 are distinguished: those that provide evidence of conditions that existed at the end of the reporting period (adjusting events) and those that are indicative of conditions that arose after the reporting period (non-adjusting events).
• IAS 10 §7Events after the reporting period include all events up to the date when the financial statements are authorised for issue, even if those events occur after the public announcement of profit or of other selected financial information.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

14 questions

• The period of events after the reporting period ends on the date the entity publicly announces its profit.L1
• An event occurring between the public profit announcement and the date of authorisation for issue is still an event after the reporting period under IAS 10.L2
• An event after the reporting period may be favourable to the entity.L1
• An event occurring after the reporting period is always a non-adjusting event, since it did not exist at the reporting date.L2
• Which period do events after the reporting period cover?L1
• What characterises an adjusting event after the reporting period?L1
• A warehouse of Chervouël is flooded three weeks after the reporting date, before the accounts are authorised. How should this event be classified?L2
• Chydois has a 31 December 2025 year-end, announces its profit on 20 February 2026 and its accounts are authorised on 12 March 2026. A customer goes bankrupt on 2 March 2026. Is this event within the IAS 10 window?L2
• Among these events occurring between the reporting date and the authorisation of Chytix's accounts, which provide evidence of a condition existing at the reporting date?L2
• Chésax has a 30 June 2025 year-end; it issues a press release on its revenue on 25 July, its accounts are authorised on 5 September and approved by the meeting on 10 October. Which events fall within the IAS 10 window?L2
• Which events after the reporting period indicate a condition that arose after Clairouël's reporting date?L2
• Clirgal's accountant ends the review of events after the reporting period on the day of the annual profit announcement, three weeks before the accounts are authorised. What is the error?L2
• Drairade classifies as 'non-adjusting' a judgment handed down after the reporting date on an accident that occurred during the year, on the ground that the judgment comes later. What is the error?L2
• Draurgane adjusts its accounts for the sudden fall, one month after the reporting date, in demand for a product, on the ground that the event is known before authorisation. Sales of this product were normal up to the reporting date. What is the error?L2