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I watched your lecture on IAS 10 but I couldn’t get you completely.
Adjusting events are those events about which we have evidence at the year-end that they would happen and affect our financial statements.
Non-adjusting events are those event about which we do not have evidence at the year-end that they would happen and affect our financial statements.
Is that correct?
No. In neither case do we know about them at the year end. They are events that happen after the year end but before the accounts are finalised.
I know that events after the reporting period refer to events that occur between the date of the SOFP and the date on which the financial statements become final.
I know that adjusting events are those events that provide additional evidence about the estimation of amount at the SOFP date BUT what does ‘additional evidence’ really mean here? Please explain.
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