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

For each material category of non-adjusting event after the reporting period, what must an entity disclose under Ind AS 10?

For each material category of non-adjusting event, the entity discloses the nature of the event and an estimate of its financial effect, or states that such an estimate cannot be made. Recognised amounts are not adjusted.

  1. AOnly the date on which the event occurred
  2. BThe nature of the event and an estimate of its financial effect, or a statement that such an estimate cannot be madeCorrect
  3. CThe nature of the event, with the financial effect recognised by restating comparatives
  4. DAn estimate of its financial effect only, since the nature is evident

Explanation

Paragraph 21 requires, for each material category of non-adjusting event, disclosure of the nature of the event and an estimate of its financial effect, or a statement that such an estimate cannot be made. Restating comparatives would amount to adjusting, which is not permitted for non-adjusting events.

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