Workpapers
Workpaper template
Review of events after the reporting period
- Prepared by
- AI-assisted draft
- Reviewed by
- Not reviewed — human review required
- Status
- Published
Objective of the workpaper
Set the review window (from the reporting date to the date of authorisation for issue, according to the entity's governance), then, for each event identified (one instance per event), decide whether the condition existed at the reporting date, quantify the relevant effect, assess materiality and derive the treatment: adjustment of amounts, disclosure in the notes, update of a disclosure or no effect.
11 sections · 30 blocks · 3 calculations · 2 entries
- IAS 10 §3
- IAS 10 §4
- IAS 10 §5
- IAS 10 §6
- IAS 10 §7
- IAS 10 §8
- IAS 10 §9
- IAS 10 §10
- IAS 10 §11
- IAS 10 §12
- IAS 10 §13
- IAS 10 §21
- IAS 10 §22
Work this workpaper as a mission
Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.
- Eight events between the reporting date and the approval of the statements: reasoned classificationOpen the mission · Event 1 — Merlace liquidation
- Eight events between the reporting date and the approval of the statements: reasoned classificationOpen the mission · Event 2 — warehouse fire
- Eight events between the reporting date and the approval of the statements: reasoned classificationOpen the mission · Event 4 — dividend proposal
- Inventory sold at a loss and investments down after the reporting date: adjust or disclose?Open the mission
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundaryOpen the mission · Fraud on fictitious advances
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundaryOpen the mission · Announced tax rate change
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundaryOpen the mission · Default of the customer Vellaz
- Review file of the events after the reporting period of an industrial groupOpen the mission · Fall in the Quelvrane shares
- Review file of the events after the reporting period of an industrial groupOpen the mission · Interim dividend
- Review file of the events after the reporting period of an industrial groupOpen the mission · April strike
10 instances from the cases: the calculations and entries below are run by the calculation engine.
- File and entity
- Eight events between the reporting date and the approval of the statements: reasoned classification
- Case tasks documented here
- What period must be analysed? Does the announcement of results limit it?
- Classify the eight events.
- Do the dividend (4) and the market fall (5) change the 20X5 statements?
- Post the adjusting entry for event (1) at 31 December 20X5.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-12
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_SHAREHOLDERS_APPROVE_LATER
Event examined: facts and documents
TextRequired
CUSTOMER_LIQUIDATION_OVERDUE_SINCE_20X5
Date on which the event occurred or became known
DateRequired
20X6-01-15
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
24,000
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Account Debit Credit Expense concerned 24,000 Asset concerned 24,000 The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
SHAREHOLDER_APPROVAL_AFTER_ISSUE
Classification of the event
JudgmentRequired
Adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
FINANCIAL_DIFFICULTIES_EXISTED_AT_YEAR_END
Materiality
JudgmentRequired
Not applicable (adjusted event or outside the period)
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
ADJUSTED_EVENT
Treatment
ChoiceRequired
Adjust the amounts recognised
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryPass
- Balanced entryNot evaluated
- Assets
- -24,000
- Liabilities
- 0
- Profit or loss
- -24,000
- OCI
- 0
- Equity
- -24,000
- File and entity
- Eight events between the reporting date and the approval of the statements: reasoned classification
- Case tasks documented here
- What period must be analysed? Does the announcement of results limit it?
- Classify the eight events.
- Do the dividend (4) and the market fall (5) change the 20X5 statements?
- Post the adjusting entry for event (1) at 31 December 20X5.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-12
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_SHAREHOLDERS_APPROVE_LATER
Event examined: facts and documents
TextRequired
FIRE_DESTROYS_SECONDARY_WAREHOUSE
Date on which the event occurred or became known
DateRequired
20X6-01-20
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
SHAREHOLDER_APPROVAL_AFTER_ISSUE
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
FIRE_AROSE_AFTER_YEAR_END
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
DESTRUCTION_OF_A_WAREHOUSE_TYPICALLY_DISCLOSED
Treatment
ChoiceRequired
Disclosure in the notes, no adjustment
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Eight events between the reporting date and the approval of the statements: reasoned classification
- Case tasks documented here
- What period must be analysed? Does the announcement of results limit it?
- Classify the eight events.
- Do the dividend (4) and the market fall (5) change the 20X5 statements?
- Post the adjusting entry for event (1) at 31 December 20X5.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-12
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_SHAREHOLDERS_APPROVE_LATER
Event examined: facts and documents
TextRequired
DIVIDEND_PROPOSED_AFTER_YEAR_END
Date on which the event occurred or became known
DateRequired
20X6-02-10
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
SHAREHOLDER_APPROVAL_AFTER_ISSUE
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
NO_OBLIGATION_AT_YEAR_END
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
DIVIDENDS_IN_NOTES
Treatment
ChoiceRequired
Recognition in the next period and disclosure
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Inventory sold at a loss and investments down after the reporting date: adjust or disclose?
- Case tasks documented here
- Are the sales of batches A and B and the fall in the shares adjusting events?
- Quantify the fall in the value of the shares after the reporting date.
- Draft the disclosure of the fall in the shares.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-09
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE
Event examined: facts and documents
TextRequired
EXPORT_EMBARGO_AFTER_YEAR_END
Date on which the event occurred or became known
DateRequired
20X6-01-20
Value at the reporting date
Number
380,000
Value at the authorisation date
Number
302,000
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
78,000
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
BOARD_AUTHORISATION_DATE
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
DECLINE_REFLECTS_LATER_CIRCUMSTANCES
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
DECLINE_ABOVE_MATERIALITY_THRESHOLD
Treatment
ChoiceRequired
Disclosure in the notes, no adjustment
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundary
- Case tasks documented here
- Define the period and classify the three events (fraud, rate, Vellaz).
- Estimate the effect of the Vellaz default to be disclosed.
- Does the announced rate change alter deferred tax at 31 December 20X5? Estimate its effect.
- Draft the disclosures on the non-adjusting events and identify the missing information.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-25
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_AFTER_RESULTS_ANNOUNCEMENT
Event examined: facts and documents
TextRequired
FRAUD_DISCOVERED_20_FEBRUARY
Date on which the event occurred or became known
DateRequired
20X6-02-20
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
186,000
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Account Debit Credit Expense concerned 186,000 Asset concerned 186,000 The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
BOARD_AUTHORISATION_25_MARCH
Classification of the event
JudgmentRequired
Adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
FICTITIOUS_ASSETS_EXISTED_AT_YEAR_END
Materiality
JudgmentRequired
Not applicable (adjusted event or outside the period)
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
ADJUSTED_EVENT
Treatment
ChoiceRequired
Adjust the amounts recognised
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryPass
- Balanced entryNot evaluated
- Assets
- -186,000
- Liabilities
- 0
- Profit or loss
- -186,000
- OCI
- 0
- Equity
- -186,000
- File and entity
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundary
- Case tasks documented here
- Define the period and classify the three events (fraud, rate, Vellaz).
- Estimate the effect of the Vellaz default to be disclosed.
- Does the announced rate change alter deferred tax at 31 December 20X5? Estimate its effect.
- Draft the disclosures on the non-adjusting events and identify the missing information.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-25
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_AFTER_RESULTS_ANNOUNCEMENT
Event examined: facts and documents
TextRequired
TAX_RATE_CUT_ANNOUNCED
Date on which the event occurred or became known
DateRequired
20X6-03-10
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
BOARD_AUTHORISATION_25_MARCH
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
RATE_NOT_ENACTED_OR_ANNOUNCED_AT_YEAR_END
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
EFFECT_ABOVE_THRESHOLD
Treatment
ChoiceRequired
Disclosure in the notes, no adjustment
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Fraud discovered before approval and announced tax rate change: the IAS 10 / IAS 8 / IAS 12 boundary
- Case tasks documented here
- Define the period and classify the three events (fraud, rate, Vellaz).
- Estimate the effect of the Vellaz default to be disclosed.
- Does the announced rate change alter deferred tax at 31 December 20X5? Estimate its effect.
- Draft the disclosures on the non-adjusting events and identify the missing information.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-25
Governance and steps of approval and issue of the financial statements
TextRequired
BOARD_AUTHORISES_ISSUE_AFTER_RESULTS_ANNOUNCEMENT
Event examined: facts and documents
TextRequired
CUSTOMER_FLOOD_THEN_ADMINISTRATION
Date on which the event occurred or became known
DateRequired
20X6-01-15
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
75,000
Compensation or recovery expected
Number
15,000
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
60,000
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
BOARD_AUTHORISATION_25_MARCH
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
CUSTOMER_SOLVENT_AT_YEAR_END_FLOOD_IN_JANUARY
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
EFFECT_ABOVE_THRESHOLD
Treatment
ChoiceRequired
Disclosure in the notes, no adjustment
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Review file of the events after the reporting period of an industrial group
- Case tasks documented here
- Determine the authorisation date and the period to be analysed.
- Classify each event identified.
- Measure the fall in the Quelvrane shares after the reporting date.
- Post the dividend entry in the right period.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-24
Governance and steps of approval and issue of the financial statements
TextRequired
MANAGEMENT_BOARD_SUBMITS_TO_NON_EXECUTIVE_SUPERVISORY_BOARD
Event examined: facts and documents
TextRequired
MARKET_FALL_AFTER_SCANDAL_OF_MARCH
Date on which the event occurred or became known
DateRequired
20X6-03-03
Value at the reporting date
Number
1,240,000
Value at the authorisation date
Number
1,054,000
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
186,000
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
Management authorises issue to the supervisory board
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
MANAGEMENT_BOARD_AUTHORISES_SUBMISSION_24_MARCH
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
FALL_REFLECTS_LATER_CIRCUMSTANCES
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
FALL_ABOVE_MATERIALITY_THRESHOLD
Treatment
ChoiceRequired
Disclosure in the notes, no adjustment
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
- File and entity
- Review file of the events after the reporting period of an industrial group
- Case tasks documented here
- Determine the authorisation date and the period to be analysed.
- Classify each event identified.
- Measure the fall in the Quelvrane shares after the reporting date.
- Post the dividend entry in the right period.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-24
Governance and steps of approval and issue of the financial statements
TextRequired
MANAGEMENT_BOARD_SUBMITS_TO_NON_EXECUTIVE_SUPERVISORY_BOARD
Event examined: facts and documents
TextRequired
INTERIM_DIVIDEND_DECLARED_10_MARCH
Date on which the event occurred or became known
DateRequired
20X6-03-10
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
900,000
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Account Debit Credit Retained earnings 900,000 Dividends payable 900,000
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
Management authorises issue to the supervisory board
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
MANAGEMENT_BOARD_AUTHORISES_SUBMISSION_24_MARCH
Classification of the event
JudgmentRequired
Non-adjusting event
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
NO_OBLIGATION_AT_YEAR_END
Materiality
JudgmentRequired
Material: disclosure required
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
DIVIDENDS_IN_NOTES
Treatment
ChoiceRequired
Recognition in the next period and disclosure
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryPass
- Assets
- 0
- Liabilities
- 900,000
- Profit or loss
- 0
- OCI
- 0
- Equity
- -900,000
- File and entity
- Review file of the events after the reporting period of an industrial group
- Case tasks documented here
- Determine the authorisation date and the period to be analysed.
- Classify each event identified.
- Measure the fall in the Quelvrane shares after the reporting date.
- Post the dividend entry in the right period.
Inputs
InputsReporting date
DateRequired
20X5-12-31
Date of authorisation for issue
DateRequired
20X6-03-24
Governance and steps of approval and issue of the financial statements
TextRequired
MANAGEMENT_BOARD_SUBMITS_TO_NON_EXECUTIVE_SUPERVISORY_BOARD
Event examined: facts and documents
TextRequired
STRIKE_2_TO_6_APRIL
Date on which the event occurred or became known
DateRequired
20X6-04-02
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
0
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
0
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
Management authorises issue to the supervisory board
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
MANAGEMENT_BOARD_AUTHORISES_SUBMISSION_24_MARCH
Classification of the event
JudgmentRequired
After authorisation: outside the period
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
EVENT_AFTER_THE_AUTHORISATION_DATE
Materiality
JudgmentRequired
Not applicable (adjusted event or outside the period)
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
OUTSIDE_THE_PERIOD_REVIEWED
Treatment
ChoiceRequired
No effect on these financial statements
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References
Checks and financial statement impact
- Authorisation date documentedPass
- Classification documentedPass
- Materiality assessedPass
- Treatment selectedPass
- Balanced entryNot evaluated
- Balanced entryNot evaluated
- Assets
- 0
- Liabilities
- 0
- Profit or loss
- 0
- OCI
- 0
- Equity
- 0
Inputs
InputsReporting date
DateRequired
Date of authorisation for issue
DateRequired
Governance and steps of approval and issue of the financial statements
TextRequired
Event examined: facts and documents
TextRequired
Date on which the event occurred or became known
DateRequired
Value at the reporting date
Number
Value at the authorisation date
Number
Carrying amount lost or destroyed
Number
Compensation or recovery expected
Number
Case data: the expected amount comes from the documents (insurer, liquidator).
Amount of the adjustment to recognise (adjusting event)
Number
Dividend declared after the reporting period
Number
Supporting evidence
EvidenceEvidence obtained and referenced (category, document reference)
EvidenceRequired
Period covered and authorisation date
AnalysisIAS 10 §3IAS 10 §4IAS 10 §5IAS 10 §6IAS 10 §7
Points reviewed
ChecklistRequired
- Window: from the reporting date to the date of authorisation for issue
- Events after the announcement of results included
- Authorisation process specific to the entity's governance
- Shareholder approval after issue: date of issue
- Non-executive supervisory board: management authorises issue to the board
Classification of the event
AnalysisIAS 10 §3IAS 10 §8IAS 10 §9IAS 10 §10IAS 10 §11IAS 10 §12IAS 10 §13
Points reviewed
ChecklistRequired
- Evidence of a condition existing at the reporting date: adjustment
- Examples: settled lawsuit, customer bankruptcy, sale of inventories, cost or price determined, bonuses, fraud or error
- Condition arising after the reporting date: no adjustment
- Later decline in market value: later circumstances
- Dividends declared after the reporting period: no liability at the reporting date
Quantified effect of the event
CalculationsIAS 10 §11IAS 10 §21
Decrease in value after the reporting date (not recognised)
Calculation
Value at the authorisation date ; − Value at the reporting date
Increase in value after the reporting date (not recognised)
Calculation
Value at the authorisation date ; − Value at the reporting date
Estimate of the financial effect of a non-adjusting event
Calculation
Carrying amount lost or destroyed ; − Compensation or recovery expected
Teaching assumption: simple estimate (value lost − expected compensation); IAS 10 asks for an estimate of the financial effect or a statement that it cannot be made (para. 21), without setting a method.
Journal entries
EntriesAdjustment at the reporting date (adjusting event)
Entry
Debit Expense concerned ← Amount of the adjustment to recognise (adjusting event) ; Credit Asset concerned ← Amount of the adjustment to recognise (adjusting event)
The detailed amount of the adjustment is set in the schedule of adjustments for events after the reporting period.
Dividend: entry of the next period, at the declaration date
Entry
Debit Retained earnings ← Dividend declared after the reporting period ; Credit Dividends payable ← Dividend declared after the reporting period
Judgements
JudgmentIAS 10 §3IAS 10 §5IAS 10 §6IAS 10 §8IAS 10 §10IAS 10 §21
Act that constitutes the authorisation for issue
JudgmentRequired
The board authorises issue / Management authorises issue to the supervisory board / Approval by the supervisory board / Approval by the shareholders
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Classification of the event
JudgmentRequired
Adjusting event / Non-adjusting event / After authorisation: outside the period
Professional judgement: what matters is whether the condition existed at the reporting date, not the date of the event that reveals it (para. 3).
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Materiality
JudgmentRequired
Material: disclosure required / Not material / Not applicable (adjusted event or outside the period)
Professional judgement based on the decisions of the primary users (para. 21); IAS 10 sets no numerical threshold.
Rationale: facts relied on, analysis, alternative rejected
TextRequired
Treatment
ChoiceRequired
Adjust the amounts recognised / Disclosure in the notes, no adjustment / Update of an existing disclosure / Recognition in the next period and disclosure / No effect on these financial statements
Disclosures
DisclosureIAS 10 §13IAS 10 §21IAS 10 §22
Points reviewed
ChecklistRequired
- Nature of the event
- Estimate of the financial effect
- Or statement that the estimate cannot be made
- Typical events calling for disclosure (business combination, destruction, restructuring, tax rates…)
- Dividends declared before authorisation: disclosed in the notes
Para. 13 refers to IAS 1 for the disclosure of dividends. Wording before IFRS 18: the reference to IAS 1 may be amended for periods beginning on or after 1 January 2027 (new wording not taught).
Conclusion
ConclusionSigned review: classification, adjustments and disclosures
ConclusionRequired
Effect on the financial statements
FS impactEffect of the entries, line by line (derived from the entries)
TableRequired
Normative references
ReferencesNormative references
References