I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Non-adjusting event:

 'those that are indicative of conditions that arose after the reporting period.'   

 

(IAS 10, para. 3) 

The standard then looks at events which do not require adjustment:  

'An entity shall not adjust the amounts recognised in its financial statements to reflect non-adjusting 

events after the reporting period.'  

(IAS 10, para. 10)  

The example given by the standard of such an event is where the value of an investment falls between the 

reporting date and the date the financial statements are authorised for issue. The fall in value represents 

circumstances during the current period, not conditions existing at the previous reporting date, so it is not 

appropriate to adjust the value of the investment in the financial statements. Disclosure is an aid to users, 

however, indicating 'unusual changes' in the state of assets and liabilities after the reporting date. 

Other examples of non-adjusting events include the following. 

 

Acquisition, or disposal, of a subsidiary after the year end 

 

Announcement of a plan to discontinue an operation 

 

Major purchases and disposals of assets 

 

Destruction of a production plant by fire after the end of the reporting period 

 

Announcement or commencing implementation of a major restructuring 

 

Share transactions after the end of the reporting period 

 

Litigation commenced after the end of the reporting period 

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