This is a post of my own detailed and thorough explanation on the standards of the subject I'm taking, P2 Corporate Reporting (ACCA)
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IAS 10 Events after Reporting Period
Those are the events which occurred after the year end but before the financial statement are authorized for issue.
There are two types which are the adjusting events and non-adjusting events.
Adjusting events
It must be taken into account and the financial statement must be adjusted. These events provide further evidence of condition that existed at year end. For example, customer default and settlement/compensation.
Non-adjusting events
This event cannot be adjusted because it is next year adjustment. It is those events that are indicative of condition that arose after year end. For example, the changes in investment value and fire/floods after year end.
Dividend is declared after the year end so it is a non-adjusting event.
Going concern is an event after reporting period but if a company intends to liquidate or cease its business which means it is no longer a going concern, it is still an adjusting event.
Ends,
IAS 10 Events after Reporting Period
Those are the events which occurred after the year end but before the financial statement are authorized for issue.
There are two types which are the adjusting events and non-adjusting events.
Adjusting events
It must be taken into account and the financial statement must be adjusted. These events provide further evidence of condition that existed at year end. For example, customer default and settlement/compensation.
Non-adjusting events
This event cannot be adjusted because it is next year adjustment. It is those events that are indicative of condition that arose after year end. For example, the changes in investment value and fire/floods after year end.
Dividend is declared after the year end so it is a non-adjusting event.
Going concern is an event after reporting period but if a company intends to liquidate or cease its business which means it is no longer a going concern, it is still an adjusting event.
Ends,
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