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WorkpaperIAS 10 — Events after the Reporting PeriodL1 · L2 · L3 · L4

Review of events after the reporting period

10 missions11 sections to document35 min
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.

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.
1

Inputs

Inputs

  • Reporting 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

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Period covered and authorisation date

Analysis

IAS 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
4

Classification of the event

Analysis

IAS 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
5

Quantified effect of the event

Calculations

IAS 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.

6

Journal entries

Entries

  • Adjustment at the reporting date (adjusting event)

    Entry

    AccountDebitCredit
    Expense concerned24,000
    Asset concerned24,000

    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

7

Judgements

Judgment

IAS 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

8

Disclosures

Disclosure

IAS 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).

9

Conclusion

Conclusion

  • Signed review: classification, adjustments and disclosures

    ConclusionRequired

10

Effect on the financial statements

FS impact

  • Effect of the entries, line by line (derived from the entries)

    TableRequired

11

Normative references

References

  • Normative references

    References

12

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