IAS 10: Events After the Balance Sheet Date - Key Accounting Standards

International Accounting Standard No. 10

Events Occurring After the Balance Sheet Date

Objective

The objective of this Standard is to prescribe:

1. when an entity shall adjust its financial statements for events after the balance sheet date and
2. the disclosures that an entity should give about the date on which the financial statements were authorized for issue and about events after the balance sheet date.

The Standard also requires the entity that does not prepare its financial statements under the assumption of going concern, if the events after the balance sheet date indicate that this hypothesis of continuity is not appropriate.

Scope

This Standard is applicable in the accounting and disclosures related to events after the balance sheet date.

The events after the balance sheet date are those events, whether favorable or unfavorable, that have occurred between the balance sheet date and the date of approval of financial statements for publication.

Dividends

If, after the balance sheet date, the entity agrees to distribute dividends to holders of participatory tools in equity (as defined in IAS 32 Financial Instruments: Presentation and disclosure) does not recognize those dividends as a liability in the balance sheet date.

Going concern

An entity shall not prepare its financial statements on the basis that it is a going concern if management determines after the balance sheet date either that it intends to liquidate the entity or cease trading, or that there is no realistic alternative to.

Disclosures

Date of approval for publication of financial statements. An entity shall disclose the date on which the financial statements were authorized for issue and who gave that authorization. In the event that the entity owners or others have the power to amend the financial statements after publication, the entity shall also disclose that fact.

Updating Disclosure about conditions at the balance sheet date if, after the balance sheet date, the entity is informed about conditions that existed at that date, updated the notes to the financial statements, depending on the information received, the disclosures related to such conditions.

International Accounting Standard No 11

Construction Contracts

Aim

The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts. Due to the nature of the activity undertaken in construction contracts, the date of contract activity begins and the date that ends the same fall, usually in different accounting periods, therefore, the fundamental question in accounting for construction contracts is the allocation of revenues and costs that each generate between accounting periods over which it runs.