adjusting events

Absolute assurance in auditing - meaning

Adjusting events after reporting period – meaning

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
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Revision question on IAS 10 (NBAA May 2017)

(a) Consider the following list of events that occurred between 31st December 2016(reporting date) and 31st March 2017 (date of authorization of financial statement for issue) and decide which one you would classify as adjusting events and which are non-adjusting events.  You should also state clearly the treatment that you are proposing in each case.
(i) The … Read the rest