Corporate Accounting and Auditing · Events after the Reporting Period (Ind AS 10)

Ind AS 10 Events After the Reporting Period: Objective and Definitions

Updated 10 October 2026 · Fact-checked

Ind AS 10 tells you when to adjust financial statements for events after the reporting period and what to disclose. Events occurring between the end of the reporting period and the date the Board approves the statements are split into adjusting events (evidence of conditions at period end) and non-adjusting events (conditions arising later).

Understand Ind AS 10 Objective, Scope and Key Definitions

Financial statements are prepared as at a date, say 31 March. But they are not approved on that day. The Board usually approves them weeks later. Things happen in between. Ind AS 10 tells you what to do with them.

The objective of the Standard is to prescribe (a) when an entity should adjust its financial statements for events after the reporting period, and (b) the disclosures about the date the statements were approved for issue and about events after the reporting period. It also says the entity should not prepare its financial statements on a going concern basis if events after the reporting period indicate that the going concern assumption is not appropriate.

Events after the reporting period are events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are approved by the Board of Directors (for a company), or by the corresponding approving authority for any other entity, for issue. Note the words: both favourable and unfavourable events count. The window closes on the approval date, not the date of the auditor's report or the AGM.

Two types exist. Adjusting events provide evidence of conditions that existed at the end of the reporting period. Non-adjusting events indicate conditions that arose after the reporting period. The test is simple: did the condition already exist on the balance sheet date? If yes, adjust the amounts. If no, do not adjust; disclose if material.

The date of approval matters because, as the Standard says, the financial statements do not reflect events after this date. Ind AS uses the words 'approval of the financial statements for issue' where IAS 10 uses 'authorisation'. So the 'date of authorisation' that students search for is the date of approval for issue in Ind AS 10.

There is one special rule. If a material provision of a long-term loan arrangement is breached on or before the end of the reporting period, so the liability becomes payable on demand at the reporting date, then the lender's agreement before approval not to demand payment is treated as an adjusting event. Per the notification supplied, this closing paragraph is omitted from annual reporting periods beginning on or after 1 April 2026, so check which rule your exam term follows.

Key rules to remember

Window of events after the reporting period: End of reporting period → Date of approval of financial statements for issue; Both favourable and unfavourable events in this window are covered.
Adjusting event: Evidence of conditions existing at the end of the reporting period → adjust recognised amounts; Para 8: the entity shall adjust the amounts recognised.
Non-adjusting event: Condition arose after the reporting period → do not adjust; disclose if material; Para 10 prohibits adjustment. Para 21 requires nature of event and estimate of financial effect, or a statement that no estimate can be made.
Approval date disclosure: Disclose: date of approval for issue + who gave approval; Para 17. Also disclose if owners or others can amend the statements after issue.

How to solve Ind AS 10 Objective, Scope and Key Definitions questions

Use this method for any question asking you to classify or treat an event after the reporting period.

1Note the reporting date and the date the Board approved the financial statements.
2Check the event date. If it falls outside this window, Ind AS 10 does not apply to it.
3Ask: did the condition exist at the reporting date? The event may only give evidence about it.
4If yes, classify as adjusting and change the recognised amounts (provision, impairment, cost, revenue).
5If no, classify as non-adjusting. Do not change amounts.
6For non-adjusting events, check materiality. If material, disclose the nature and an estimate of financial effect, or state that it cannot be estimated.
7Check going concern. If events indicate it is not appropriate, the statements are not prepared on that basis.
8State the approval date and approving authority disclosure in your answer.

Quickest way: Three-question classification test

When to use it: Use in MCQs and short classification questions where time is tight.

Is the event between the reporting date and approval date? If not, stop.
Did the underlying condition exist on the reporting date? Yes means adjusting; no means non-adjusting.
If non-adjusting, add: disclose nature and financial effect only if material.

Common mistakes in Ind AS 10 Objective, Scope and Key Definitions

Treating the date of the auditor's report or the AGM as the end of the window.
Students link 'issue' with the audit report or meeting.
Fix: The window ends on the date the Board (or corresponding authority) approves the statements for issue.
Thinking only unfavourable events are covered.
The word 'events after' sounds like bad news.
Fix: The definition covers events, favourable and unfavourable.
Adjusting the books for a non-adjusting event such as a fire after year end.
The loss looks big, so students want to record it.
Fix: Para 10 says do not adjust. Only disclose under para 21 if material.
Classifying by how big or bad the event is rather than when the condition arose.
Students mix up materiality with the adjusting test.
Fix: Use the condition test: existed at reporting date means adjusting. Materiality only decides disclosure.
Writing 'authorisation' as a different date from approval for issue.
IAS 10 wording is used in reference books.
Fix: Ind AS 10 uses 'approval of the financial statements for issue'. Treat them as the same concept.
Forgetting disclosure of the approval date and who approved it.
Students focus only on adjustments.
Fix: Always add para 17 disclosure: date and approving authority, plus any power of owners to amend after issue.

Worked examples

Example 1

A company's reporting date is 31 March 2027. The Board approved the financial statements on 20 May 2027. State, with reasons, whether each event is adjusting or non-adjusting: (a) on 10 April 2027 a major customer was declared bankrupt; the customer owed the company on balances outstanding at 31 March 2027; (b) on 5 May 2027 a fire destroyed a major production plant.

Show the solution

Both events fall between 31 March 2027 and 20 May 2027, so Ind AS 10 applies.
Event (a): the bankruptcy of a customer after the reporting period usually confirms that the customer was credit-impaired at the end of the reporting period (para 9(b)(i)). The receivable existed at year end. So it is adjusting: recognise or adjust the impairment loss.
Event (b): the fire occurred after the reporting period and the plant was intact at 31 March 2027. Destruction of a major production plant by fire after the reporting period is a listed non-adjusting example (para 22(d)). Do not adjust.
For (b), disclose the nature of the event and an estimate of its financial effect, or state that an estimate cannot be made (para 21).

Answer: (a) Adjusting event: adjust for the impairment of the receivable. (b) Non-adjusting event: no change in recognised amounts; disclose nature and financial effect if material.

Example 2

Explain what Ind AS 10 requires an entity to disclose about the date of approval of its financial statements, and why this date matters.

Show the solution

State the requirement: the entity shall disclose the date when the financial statements were approved for issue and who gave that approval (para 17).
Add: if the entity's owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact.
Explain why it matters: users need to know when the statements were approved because the financial statements do not reflect events after this date (para 18).
Link to the definition: events up to this date are covered by Ind AS 10; later events are not.

Answer: The entity discloses the approval date, the approving authority and any power to amend after issue. The date matters because it marks the end of the events-after-the-reporting-period window and users should know the statements do not reflect later events.

Exam tips

In MCQs, apply the 'did the condition exist at the reporting date' test before reading the options in detail.
Memorise the paragraph 9 adjusting examples and the paragraph 22 non-adjusting examples; questions often copy them.
In written answers, always give the reason for classification, not just the label. Step marks come from the reasoning.
Mention the window end date as the Board approval date, and add the paragraph 17 disclosure when asked about disclosures.
If the loan-breach rule appears, note it applies to periods before the omission from 1 April 2026 and read the question's period carefully.

Practice questions from Events after the Reporting Period (Ind AS 10)

Ind AS 10 Objective, 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.

Ind AS 10 Objective, Scope and Key Definitions: frequently asked questions

What is the objective of Ind AS 10?

It prescribes when an entity should adjust its financial statements for events after the reporting period. It also prescribes disclosures about the approval date and about such events. Further, an entity must not use the going concern basis if events after the reporting period show it is not appropriate.

What is the date of authorisation of financial statements for issue in Ind AS 10?

Ind AS 10 uses the words 'approval of the financial statements for issue'. For a company it is the date the Board of Directors approves them. For other entities, it is the date the corresponding approving authority approves them.

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

Adjusting events give evidence of conditions that existed at the end of the reporting period, so amounts are adjusted. Non-adjusting events indicate conditions that arose after the reporting period, so amounts are not adjusted, but material ones are disclosed.

Do events after the approval date fall under Ind AS 10?

No. The definition covers events up to the approval date. The financial statements do not reflect events after that date.