Financial Reporting · Ind AS 10 Events after the Reporting Period

Ind AS 10 Scope, Definitions and Events after Reporting Period

Updated 5 October 2026 · Fact-checked

Events after the reporting period are favourable or unfavourable events occurring between the end of the reporting period and the date the financial statements are authorised for issue. To solve a question, fix both dates, then ask whether the event gives evidence of conditions existing at the reporting date (adjust) or arose afterwards (disclose only).

Understand Ind AS 10 Scope, Definitions and Events after Reporting Period

Financial statements are prepared as at a reporting date, such as 31 March. But they are approved weeks or months later. Things can happen in that gap. Ind AS 10 tells you which of those things must change the numbers and which only need a note.

Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types exist. Adjusting events provide evidence of conditions that existed at the end of the reporting period. Non-adjusting events are indicative of conditions that arose after the reporting period.

The key date is the date of authorisation for issue. This is the date on which the financial statements are authorised for issue. For a company, it is generally the date the board of directors approves them. If the owners or others have the power to amend the statements after issue, that fact does not change the date, but it must be disclosed. A later shareholder approval, such as at the annual general meeting, does not normally move the cut-off for board-approved statements. Always check the facts given in the question. Events up to the date of authorisation count. Events after it do not.

The test is about condition at the reporting date, not about when the cash moved or when the paper was signed. A customer going insolvent after year-end usually confirms that the receivable was already impaired at year-end. So you adjust. A fire that destroys a plant after year-end did not exist at year-end. So you only disclose, if material.

The standard covers both: recognition and measurement for adjusting events, and disclosure for non-adjusting events and for the date of authorisation. Ind AS 10 only classifies an event as adjusting or non-adjusting. The amount of any adjustment is measured under the relevant standard, for example the credit loss on a receivable under Ind AS 109. Dividends and going concern are dealt with separately in related topics.

Key rules to remember

Definition: events after the reporting period: Period = end of reporting period → date of authorisation for issue; Includes favourable and unfavourable events. Events occurring up to the date of authorisation are considered.
Adjusting event rule: Evidence of conditions existing at reporting date → adjust recognised amounts; Example: settlement of a court case after year-end confirming a present obligation at year-end.
Non-adjusting event rule: Conditions arising after reporting date → do not adjust; disclose if material; For each material category of non-adjusting event, disclose the nature of the event and an estimate of its financial effect, or a statement that such an estimate cannot be made.
Date of authorisation disclosure: Disclose date of authorisation for issue and who gave it; Also disclose if owners or others can amend the statements after issue.
Materiality for non-adjusting events: Non-disclosure could influence economic decisions of users → disclose; Disclosure is needed only where the event is material.

How to solve Ind AS 10 Scope, Definitions and Events after Reporting Period questions

Use this sequence for any scenario question on Ind AS 10. It keeps you inside the provision-facts-conclusion format.

1Note the reporting date and the date of authorisation for issue (for a company, generally the board approval date). Do not use a later shareholder approval date as the cut-off unless the facts show that is when the statements were authorised for issue.
2Check whether the event falls between those two dates. If it falls after authorisation, Ind AS 10 does not require adjustment.
3Ask: did the condition exist at the reporting date? Look for words such as 'confirms', 'settles', 'determines' relating to a past obligation or asset.
4Classify as adjusting or non-adjusting and quote the definition in one line.
5For an adjusting event, remember Ind AS 10 only classifies it. Measure the amount under the relevant standard (for a receivable, the credit loss under Ind AS 109), then state the entry or the effect on profit and assets or liabilities.
6For a non-adjusting event, state that no adjustment is made, and give the disclosure: nature and estimated financial effect.
7Check materiality and whether the date of authorisation disclosure is needed. Close with a one-line conclusion.

Quickest way: Two-date, one-question shortcut

When to use it: Use it for MCQs and short case scenarios where you have about two minutes.

Mark the two dates: year-end and board approval.
Event outside the window? Stop. No effect under Ind AS 10.
Inside the window, ask one question: 'Was the situation already there on the balance sheet date?'
Yes means adjust. No means disclose only.
Write the amount of the adjustment or the disclosure content in one line.

Common mistakes in Ind AS 10 Scope, Definitions and Events after Reporting Period

Treating shareholder approval at the AGM as the date of authorisation for issue.
Students link 'approval' with the final approval stage.
Fix: Use the date the statements are authorised for issue, which for a company is generally the board approval date. Events after that date are outside the standard's window.
Classifying an event as adjusting just because it is unfavourable or large.
Size and bad news feel like reasons to change the numbers.
Fix: Classify only by whether the condition existed at the reporting date. A big fire after year-end is still non-adjusting.
Not adjusting for a post-year-end customer insolvency affecting a year-end receivable.
Students see the insolvency date and treat it as a new event.
Fix: Insolvency after year-end generally confirms that the debt was already credit-impaired at year-end, so Ind AS 10 treats it as adjusting. Measure the amount as a credit loss under Ind AS 109, which is an estimate of what is recoverable.
Adjusting the books for a non-adjusting event instead of disclosing it.
Students want the balance sheet to show the latest position.
Fix: Leave recognised amounts unchanged. Disclose the nature and estimated financial effect if material.
Forgetting the disclosure of the date of authorisation for issue.
It looks like a formality, so it is skipped in written answers.
Fix: Add a line stating the date and who authorised it. This is a required disclosure and an easy mark.

Worked examples

Example 1

Alpha Ltd has a reporting date of 31 March 2027. Its board approved the financial statements on 20 May 2027. On 10 May 2027, a customer, Beta Ltd, was declared insolvent. Beta owed Alpha ₹8,00,000 for goods sold in February 2027, and no provision had been made. Alpha estimates that it will recover nothing. How should Alpha treat this?

Show the solution

Dates: reporting date 31 March 2027, authorisation 20 May 2027. The insolvency on 10 May 2027 falls inside the window, so Ind AS 10 applies.
The receivable arose from a February 2027 sale. The customer's financial difficulty was effectively a condition existing at the reporting date, and the insolvency confirms it.
The event therefore provides evidence of a condition existing at the reporting date. It is an adjusting event. This is all Ind AS 10 decides.
Measurement: the amount is a credit loss measured under Ind AS 109. Here it is assumed that nothing is recoverable, so the credit loss is the full ₹8,00,000. This is an estimate based on the information available.
Adjustment in the year ended 31 March 2027: Dr Impairment loss / credit loss (P&L) ₹8,00,000; Cr Loss allowance on trade receivables ₹8,00,000.
Conclusion: profit for the year falls by ₹8,00,000 and the receivable is carried at nil net of the loss allowance.

Answer: Adjusting event. Recognise a credit loss of ₹8,00,000 (measured under Ind AS 109, assuming nothing is recoverable) in the financial statements for the year ended 31 March 2027.

Example 2

Gamma Ltd has a reporting date of 31 March 2027, and its board authorised the financial statements on 25 May 2027. On 12 April 2027, a fire destroyed a warehouse, with stock of ₹40,00,000 uninsured. The stock existed and was correctly valued at 31 March 2027, so its carrying amount was ₹40,00,000. Assume no part of the stock can be salvaged. Separately, the AGM approving the accounts is scheduled for 30 July 2027. What is the treatment?

Show the solution

Dates: the fire on 12 April 2027 lies between 31 March 2027 and 25 May 2027, so it is an event after the reporting period. The board authorised the statements on 25 May 2027, so the AGM date of 30 July 2027 does not move the cut-off.
The fire occurred after the reporting date. The stock was intact and correctly valued at year-end. The condition did not exist at the reporting date.
So it is a non-adjusting event. Do not write off the stock in the year ended 31 March 2027.
Check materiality: a potential uninsured loss of up to ₹40,00,000 is likely to influence user decisions, so disclose it (subject to Gamma's materiality level).
Disclosure: nature of the event (fire at warehouse on 12 April 2027) and the estimated financial effect. The maximum loss is the ₹40,00,000 carrying amount, which is the loss on the assumption of nil salvage value. If any stock were salvaged, the effect would be lower. Also disclose the date of authorisation, 25 May 2027.
The loss arises on 12 April 2027, after the reporting date, so it is recognised in FY 2027-28 (the year ending 31 March 2028) when it occurs, up to the ₹40,00,000 carrying amount on the nil salvage assumption.

Answer: Non-adjusting event. No change to 31 March 2027 figures. Disclose the fire and its estimated financial effect, a maximum of ₹40,00,000 (the carrying amount, assuming nil salvage value), along with the authorisation date of 25 May 2027. The loss is recognised in FY 2027-28 when it occurs.

Exam tips

Always write the two dates at the top of your answer. Examiners look for the correct cut-off.
Use the phrase 'evidence of conditions that existed at the end of the reporting period' for adjusting events and 'conditions that arose after the reporting period' for non-adjusting ones.
In case scenarios, a date such as the AGM or a later press release may be given alongside the board approval date. Take the cut-off from the date the statements were authorised for issue, which for a company is generally the board approval date.
For non-adjusting events, always state the disclosure content: nature and estimate of financial effect. Do not stop at 'no adjustment'.
In MCQs, test the event against the reporting date condition, not the size of the amount.

Practice questions from Ind AS 10 Events after the Reporting Period

Ind AS 10 Scope, Definitions and Events after Reporting Period in other exams

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

Ind AS 10 Scope, Definitions and Events after Reporting Period: frequently asked questions

What is the date of authorisation for issue under Ind AS 10?

It is the date on which the financial statements are authorised for issue, which for a company is generally when the board approves them. Events up to this date are considered. If owners or others can amend the statements after issue, the date does not change, but that fact is disclosed.

What is the difference between adjusting and non-adjusting events?

Adjusting events give evidence of conditions that existed at the reporting date, so you change the recognised amounts. Non-adjusting events relate to conditions that arose after the reporting date, so you only disclose them if material.

Do favourable events count as events after the reporting period?

Yes. The definition covers both favourable and unfavourable events occurring between the reporting date and the date of authorisation for issue.

Is the AGM date relevant for Ind AS 10?

Not for the cut-off in the usual case. The window ends at the date of authorisation for issue, which for a company is generally the board approval date. A later AGM date does not extend it, so read the facts in the question to confirm when the statements were authorised.