According to IAS 10 events after reporting period adjusting event is an event after reporting date that provides further evidence of conditions that existed at the reporting date
Examples of adjusting events are
- Discovery of fraud or errors that show the financial statements are incorrect
- Determination after reporting date of cost of assets purchased or proceeds from asset sold, before the reporting date.
- Events that indicates that the going concern assumption in relation to the whole or part of the entity is not appropriate
- Settlement after reporting date of court cases that confirm the entity had present obligation at the reporting date
- Bankruptcy of the customer that occur after the reporting date that confirm loss existed at the reporting date on trade receivable