Events after the Reporting period

When should a reporting entity recognise events after the reporting period in the financial statements that are being finalised?

What are the disclosures that should be given about the date when the financial statements were authorised for issue and about the events after the reporting date?

The answers look a bit colorful but are spot on and short……

The three important terms were it is all about are:

  • Events after the reporting period are those events, favourable and unfavourable,
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Financial Statement Presentation

Correct and complete information of reporting entity’s financial position and financial performance

Financial statements shall present correct and complete information of the financial position, financial performance and cash flows of an entity. Correct and complete information requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in:

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Going concern assumption

Going concern is one the fundamental assumptions in accounting on the basis of which financial statements are prepared. Financial statements are prepared assuming that a business entity will continue to operate in the foreseeable future without the need or intention on the part of management to liquidate the entity or to significantly curtail its operational activities. Therefore, it is assumed that the entity will realize its assets and settle its obligations in the normal course of the business.

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