Non-adjusting event
A non-adjusting event after the reporting period indicates conditions arising after the reporting date. Consider events between the reporting date and authorisation of the financial statements. If an event concerns a new condition, retain the reporting-date amounts but disclose its nature and estimated financial effect when material, or state that the effect cannot be estimated. For instance, a post-year-end fire does not itself establish damage existing at year end.
Worked example
A major post-year-end fire generally does not change year-end inventory values.
Common mistake
Disclose material events and estimated financial effect where required; a dividend declared after year end is not a year-end liability.
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 | FR | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| ACCA | SBR | Direct | Official assessment-window verification pending |
| ACCA | SBR | Direct | September 2026–June 2027 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |