Objective and scope of the standard

Learning objectives

• Explain the objective and scope of IAS 10: adjusting the financial statements, disclosures about the date of authorisation and about events after the reporting period, and going concern.L1

Normative references

• IAS 10 §1The objective of the Standard is to prescribe when an entity should adjust its financial statements for events after the reporting period, and the disclosures it should give about the date when the financial statements were authorised for issue and about those events; the Standard also prohibits preparing the financial statements on a going concern basis when events after the reporting period indicate that this assumption is not appropriate.
• IAS 10 §2The Standard applies to the accounting for, and disclosure of, events after the reporting period.

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

9 questions

• IAS 10 prescribes when an entity adjusts its financial statements for events occurring after the end of the reporting period.L1
• IAS 10 deals only with recognition: it requires no disclosure about the date of authorisation for issue.L1
• Under IAS 10, an entity cannot prepare its financial statements on a going concern basis if events after the reporting period show that this basis is not appropriate.L1
• IAS 10 applies only to unfavourable events occurring after the reporting period.L1
• The scope of IAS 10 covers both the accounting for events after the reporting period and the disclosures about them.L1
• Which of these topics is part of the objective of IAS 10?L1
• Which going concern rule is part of the objective of IAS 10?L1
• Chedenne wonders whether IAS 10 applies to a favourable contract signed after its reporting date. What is the answer?L1
• Which combination best describes what IAS 10 covers?L1