Events after the balance sheet date are those events, favourable and unfavourable, that occur between the balance sheet date and the date when the financial statements are authorised for issue.
Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the balance sheet date (adjusting events after the balance sheet date); and
(b) those that are indicative of conditions that arose after the balance sheet date (non-adjusting events after the balance sheet date).
(b) those that are indicative of conditions that arose after the balance sheet date (non-adjusting events after the balance sheet date).
Things you got to know for FRS 10:-
- When are financial statements authorised for issue?
- Can you name some examples of adjusting events?
- Can you name some examples of non-adjusting events?
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SSA 560 on “Subsequent Events”
Subsequent events are events that occurred between the period end and the date of the Auditor’s Report.
Source - ICPAS ePublication dated Sep 1, 2008.
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