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Contents
32.2 Events after the end of the reporting period defined.
32.2.1 Extract from FRS102: Section 32.2- 32.3.
32.3 Recognition and measurement – Adjusting events after the end of the reporting period.
32.3.1 Extract from FRS102: Section 32.4-32.5.
32.3.2.2 Examples of adjusting post balance sheet events.
32.3.2.2.1 Further worked examples of adjusting post balance sheet events.
32.4 Recognition and measurement – Non-adjusting events after the end of the reporting period.
32.4.1 Extract from FRS102: Section 32.6-32.7.
32.4.2.2 Example of non-adjusting post balance sheet date events.
32.5.1 Extract from FRS102: Section 32.7-32.7B.
32.6.1 Extract from FRS102: Section 32.8.
32.7.1 Extract from FRS102: Section 32.9.
32.8 Adjusting events after the end of the reporting period.
32.9 Non-adjusting events after the end of the reporting period.
32.9.1 Extract from FRS102: Section 32.10.
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32.2 Events after the end of the reporting period defined
32.2.1 Extract from FRS102: Section 32.2- 32.3
32.2 Events after the end of the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. There are two types of events adjusting and non-adjusting post balance sheet events:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the end of the reporting period); and
(b) those that are indicative of conditions that arose after the end of the reporting period (non-adjusting events after the end of the reporting period).
32.3 Events after the end of the reporting period include all events up to the date when the financial statements are authorised for issue, even if those events occur after the public announcement of profit or loss or other selected financial information.
32.2.2 OmniPro comment
Events after the end of the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. There are two types of events adjusting and non-adjusting post balance sheet events:
It is clear from Section 32.2 of FRS 102 that a post balance sheet event can arise from the start of the accounting period up until the date the financial statements are authorised for issue. Preliminary announcement of results are ignored, it is the date the financial statements are approved by the directors for that matters as stated in section 32.3 of FRS 102.
The exception to Section 32.2(b) of FRS 102 with regard to non-adjusting post balance sheets events is where conditions have arisen after the period end (from period end to the date of signing the auditor’s report) that indicate that the going concern concept is no longer appropriate then this should be treated as an adjusting post balance sheet event.
Example 1: Application
Events after the end of the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. There are two types of events adjusting and non-adjusting post balance sheet events.
A piece of land sold by a Company subject to planning where planning had not been obtained pre year end, should not be recognised as a sale in that year. The fact that planning is obtained post year end is not an adjusting post balance sheet event.
If on the other hand this was sold without planning and if planning is obtained the price will increase, then the sale would be recognised at its fair value at the balance sheet date depending on probabilities. If just after year end, planning is or is not obtained, then the year end sale is not adjusted. It is instead treated as a non-adjusting post balance sheet event and therefore disclosed.
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Example 2: Recoverability of trade debtor balances.
Example 3: Indicators of impairment of PPE/land etc.
Example 4: Profit on sale of plant after year end following decision to close.
Example 5: Closing office and relocating.
Example 6: Other than Going concern disclosure.
Example 7: Extract for the approval of the financial statements.
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