Adjusting event
An adjusting event after the reporting period provides further evidence about a condition that already existed at the reporting date. Adjust the relevant financial statement amounts before the statements are authorised for issue. The later event matters because it helps measure the earlier condition; it is not simply any significant event before publication. Material events concerning new conditions are normally disclosed instead.
Worked example
A customer becomes bankrupt in January because of financial difficulties present at December year end. This may confirm the year-end receivable was impaired.
Common mistake
A fire starting after year end normally concerns a new condition and is not an adjusting event.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |