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if there is a probable outflow of resources provision and disclosure is required. So this is also an adjusting event correct?
but if its an adjusting event, are both provision and disclosure required?
Adjusting events and contingent liabilities are, in general, quite separate.
For example, a law suit was received 15/12/2015 and everyone’s opinion is that there is a probably outflow of funds. It needs to be disclosed. No more news is obtained by the time the FS are signed off on 31/1/2016. There is no element of post period event either adjusting or non-adjusting.
If however, on 15/1/2016 it was discovered that there would be a probably outflow of funds, the FS should be changed to show a provision. The new information is an adjusting event as it gived more information about the state of affaris at the date of the SOFP.
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