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Hi, Sir/Madam
BPP pratice book 27.9
Which of the following statements about limited liability companies’s accounting is/are correct?
(3) IAS 10 Events after the reporting period requires all non-adjusting events to be disclosed in the notes to the financial statements.
The answer given about the statement above is ‘correct’.
What I know is if a non-adjusting event is identified and it is material (i.e. significant to the decision making of users), it should be disclosed by way of a note to the financial statements.
Am I wrong? Does non-adjusting events itself already mean it is with materiality?
Thanks a lot.
Yes – they are only called non-adjusting or adjusting events if they are material.
But from the standards,
It stated:
If non-adjusting events after the reporting period are material, non-disclosure could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity. Accordingly, an entity shall disclose the following for each material category of non-adjusting event after the reporting period:
(a) the nature of the event; and
(b) an estimate of its financial effect, or a statement that such an estimate cannot be madeFrom the statement above what I understand is there are both material and non-material non-adjusting events.
Am I wrong?
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