Section 32 – Events after the end of

the Reporting Period

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 Events after the end of the Reporting
Period defined;
Events (favourable and unfavourable) that occur between the
end of the reporting period and the date the financial
statements are authorized for issue.

Two types
• Those that provide evidence of conditions that existed at the
end of the reporting period (adjusting)
&
Those that are indicative of conditions that arose after the
end of the year of the reporting period. (non Adjusting)

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 -
Events after the
Reporting date

Adjusting
Non
Adjusting

Evidence of conditions Evidence of conditions

existing at year-end after year-end

Adjust accounts for If significant, disclose by

impact note

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 Accounting for Adjusting Events
An entity shall adjust the amounts recognized in the Financial
statements including related disclosures to reflect adjusting
events after the reporting period.

Examples
• Sale price of inventory after year end
• Liquidation of debtor after year end
• Settlement of legal case
• Discovery of fraud or error after year end that occurred
before year end

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 Accounting for Non-Adjusting Events

An entity shall not adjust the amounts recognized in the

financial statements to reflect non-adjusting events after the
end of the reporting period, but because of their significance
should be disclosed in the Financial Statements.
Examples
• A major acquisition or disposal
• A planned Restructuring announced after year end
• Major movements in asset prices or foreign exchange rates
• Material fund raisings
• Dividends approved by the company after year-end

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 Disclosure Content for Non Adjusting Event
(if deemed necessary)

• Nature of the event

• Estimate of the financial effect, or a statement that such an

estimate cannot be made.

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 Dividends
• If an entity declares dividends after the year end of the
reporting period, the entity shall not recognize those
dividends as a liability of the reporting period.

• The amount of the dividend maybe presented as a separate

component of retained earnings at the end of the reporting
period.

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 Going Concern
• An entity shall not prepare its financial Statements on the
Going Concern basis if management determine after the
reporting period that it intends to liquidate the entity or to
cease trading, or that it has no realistic alternative but to do
so.

Date of Authorization of Issue

• The entity shall disclose the date when the financial
statements were authorized for issue and who gave that
authorization.