(a) the settlement after the reporting period of a court case that confirms
that the entity had a present obligation at the end of the reporting
period. The entity adjusts any previously recognised provision related
to this court case in accordance with IAS 37 Provisions, Contingent
Liabilities and Contingent Assets or recognises a new provision. The entity
does not merely disclose a contingent liability because the settlement
provides additional evidence that would be considered in accordance
with paragraph 16 of IAS 37.
(b) the receipt of information after the reporting period indicating that an
asset was impaired at the end of the reporting period, or that the
amount of a previously recognised impairment loss for that asset needs
to be adjusted. For example:
(i)
the bankruptcy of a customer that occurs after the reporting
period usually confirms that the customer was credit-impaired
at the end of the reporting period; and
(ii)
the sale of inventories after the reporting period may give
evidence about their net realisable value at the end of the
reporting period.
(c)
the determination after the reporting period of the cost of assets
purchased, or the proceeds from assets sold, before the end of the
reporting period.
(d) the determination after the reporting period of the amount of
profit-sharing or bonus payments, if the entity had a present legal or
constructive obligation at the end of the reporting period to make such
payments as a result of events before that date (see IAS 19 Employee
Benefits).
(e) the discovery of fraud or errors that show that the financial statements
are incorrect.
Non-adjusting events after the reporting period
An entity shall not adjust the amounts recognised in its financial
statements to reflect non-adjusting events after the reporting period.
An example of a non-adjusting event after the reporting period is a decline in
fair value of investments between the end of the reporting period and the date
when the financial statements are authorised for issue. The decline in fair
value does not normally relate to the condition of the investments at the end
of the reporting period, but reflects circumstances that have arisen
subsequently. Therefore, an entity does not adjust the amounts recognised in
its financial statements for the investments. Similarly, the entity does not
update the amounts disclosed for the investments as at the end of the
reporting period, although it may need to give additional disclosure under
paragraph 21.
10
11
IAS 10
A1078 © IFRS Foundation