Skip to content

Financial Accounting · Events after the reporting period

IAS 10 Scope and Key Definitions for ACCA FA

Updated 11 October 2026 · Fact-checked

IAS 10 deals with events that happen between the end of the reporting period and the date the financial statements are authorised for issue. These events can be favourable or unfavourable. To solve a question, identify both dates, check whether the event falls inside that window, then classify it as adjusting or non-adjusting.

Understand IAS 10 Scope and Key Definitions

A company's year end is a fixed date, such as 31 December. But the financial statements are not ready on that day. Preparing them, auditing them and getting directors' approval takes weeks. During that time, new facts can appear. IAS 10 Events after the Reporting Period tells you what to do with them.

The reporting period end is the date of the statement of financial position. The date of authorisation for issue is the date the financial statements are approved for issue. In practice this is usually when the board of directors approves them. Authorisation is the point at which the statements are finalised for others to see.

An event after the reporting period is an event, favourable or unfavourable, that occurs between the end of the reporting period and the date the financial statements are authorised for issue. That period is the window. An event before the year end is not in the window. An event after authorisation is not in the window either.

Why does this matter? Users rely on the statements to judge the business. If a major customer went bankrupt just after the year end, ignoring it would mislead them. So IAS 10 sets rules: some events change the numbers, and others are only disclosed. This page covers the scope and definitions. The two types of event are covered in the pages on adjusting and non-adjusting events.

If the owners or others can amend the statements after issue, the date that counts is still the date management authorised them for issue, not the later approval by shareholders. Authorisation by the board is the key date for the window.

Key formulas to remember

Definition of an event after the reporting period
Event after the reporting period = favourable or unfavourable event occurring between the end of the reporting period and the date the financial statements are authorised for issue
Both dates matter. An event outside this window is not covered by IAS 10.
The assessment window
Window = reporting period end → date of authorisation for issue
Count events in this window only. Events on or before the year end are normal transactions.
Two types of event
Adjusting events (provide evidence of conditions at the year end) | Non-adjusting events (indicate conditions that arose after the year end)
Adjusting events change the figures. Non-adjusting events are disclosed if material.
Key date for the window
Authorisation date = date the statements are approved for issue, usually by the directors
It is not the date the auditor starts work, and not the date of the annual general meeting.

How to solve IAS 10 Scope and Key Definitions questions

Use this method on any scope or definition question about IAS 10.

  1. 1Write down the reporting period end date from the question.
  2. 2Find the date the financial statements were authorised for issue. This is often the date the directors approved them.
  3. 3Find the date the event happened.
  4. 4Check whether the event date is after the year end and on or before the authorisation date. If yes, it is inside the IAS 10 window.
  5. 5If it is outside the window, stop. IAS 10 does not apply. An earlier event is part of normal accounting for the year.
  6. 6If it is inside, ask whether it gives more evidence of a condition that existed at the year end (adjusting) or reflects a new condition (non-adjusting).
  7. 7Pick the option that matches the question wording. Check that you answered what was asked.

Quickest way: Date-line check

When to use it: Use it for multiple choice questions that give several dates and ask which event is within IAS 10.

  1. Draw a quick line: year end on the left, authorisation date on the right.
  2. Place each event date on the line.
  3. Only events between the two marks count.
  4. Eliminate options with events before the year end or after authorisation.
  5. If more than one remains, then think adjusting or non-adjusting.

Common mistakes in IAS 10 Scope and Key Definitions

  • Using the date of the annual general meeting as the end of the window.

    Students link approval with shareholders' meetings.

    Fix: The window ends at the date the financial statements are authorised for issue, which is normally the directors' approval date.

  • Treating all events after the year end as adjusting.

    Students see the word 'after' and assume the numbers must change.

    Fix: First decide if the event is in the window. Then decide the type. Many events are non-adjusting.

  • Including events that occur after the authorisation date.

    Students read the whole question and react to every later fact.

    Fix: Events after authorisation are outside IAS 10. Compare dates before you classify.

  • Thinking only bad news counts.

    Events after the year end are usually taught with losses such as customer failures.

    Fix: The definition says favourable or unfavourable. Good news can be an event too.

  • Confusing the reporting period end with the date of authorisation.

    Both are dates near each other on the calendar and appear in the same question.

    Fix: The first is the statement of financial position date. The second is the date the statements are approved for issue. Label both before you start.

Worked examples

Example 1

A company has a year end of 31 March. Its directors authorise the financial statements for issue on 20 June. Which of these events is within the IAS 10 window? (1) A fire on 15 March. (2) A customer is declared bankrupt on 10 May. (3) A new factory is bought on 5 July. (4) A sale is made on 30 March. Select the one event.

Show the solution
  1. Year end: 31 March. Authorisation date: 20 June.
  2. Window: after 31 March, up to 20 June.
  3. Event 1, 15 March: before the year end. Outside the window.
  4. Event 2, 10 May: after the year end and before 20 June. Inside the window.
  5. Event 3, 5 July: after authorisation. Outside the window.
  6. Event 4, 30 March: before the year end. Outside the window.

Answer: Only event 2, the customer bankruptcy on 10 May, is within the IAS 10 window.

Example 2

A company has a reporting period end of 31 December. The directors approve the financial statements on 28 February. The shareholders hold their meeting on 30 April. The company's major customer enters liquidation on 15 March. Is this an event after the reporting period under IAS 10?

Show the solution
  1. Reporting period end: 31 December.
  2. Authorisation date: 28 February, the date the directors approve the statements for issue.
  3. The AGM on 30 April is not the authorisation date, so ignore it for the window.
  4. The liquidation is on 15 March, which is after 28 February.
  5. The event is after the authorisation date, so it falls outside the window.

Answer: No. The liquidation happened after the financial statements were authorised for issue, so it is not an event after the reporting period under IAS 10.

Exam tips

  • Always write the two key dates first. Most definition questions are answered by the date line.
  • Read the question for the word 'authorised' or 'approved for issue'. That is the end of the window.
  • Remember that favourable events count as well as unfavourable ones.
  • In multiple response questions, check every option against the window before choosing. Select exactly the number stated.
  • Do not rush to classify as adjusting or non-adjusting if the question only asks whether the event is within the scope.

Practice questions from Events after the reporting period

IAS 10 Scope and Key Definitions in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

IAS 10 Scope and Key Definitions: frequently asked questions

What is the purpose of IAS 10?

IAS 10 sets out when a company should adjust its financial statements for events after the reporting period and what it should disclose. It also covers the date to which the financial statements are prepared for issue. Its aim is to give users complete and reliable information.

What is the date of authorisation for issue?

It is the date the financial statements are approved for issue. This is usually when the directors approve them. Events after that date are not covered by IAS 10.

Do events before the year end fall under IAS 10?

No. Events on or before the reporting period end are treated as part of normal accounting for that period. IAS 10 only looks at events after that date.

Does IAS 10 cover good news as well as bad news?

Yes. The definition covers favourable and unfavourable events. What matters is the timing, not whether the event is good or bad.