TMI BlogEvents after the Reporting PeriodX X X X Extracts X X X X X X X X Extracts X X X X ..... meanings specified: Events after 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 approved by the Board of Directors in case of a company, and, by the corresponding approving authority in case of any other entity for issue. Two types of events can be identified: (a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and (b) those that are indicative of conditions that arose after the reporting period (non-adjusting events after the reporting period). Notwithstanding anything contained above, where there is a breach of a material provision of a long-term loan arrangement on or before the end of the reporting period with the effect that the liability becomes payable on demand on the reporting date, the agreement by lender before the approval of the financial statements for issue, to not demand payment as a consequence of the breach, shall be considered as an adjusting event. 4 The process involved in approving the financial statements for issue will vary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orting period. The entity adjusts any previously recognised provision related to this court case in accordance with Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets or recognises a new provision. The entity does not merely disclose a contingent liability because the settlement provides additional evidence that would be considered in accordance with paragraph 16 of Ind AS 37. (b) the receipt of information after the reporting period indicating that an asset was impaired at the end of the reporting period, or that the amount of a previously recognised impairment loss for that asset needs to be adjusted. For example: (i) the bankruptcy of a customer that occurs after the reporting period usually confirms that the customer was credit-impaired at the end of the reporting period; and (ii) the sale of inventories after the reporting period may give evidence about their net realisable value at the end of the reporting period. (c) the determination after the reporting period of the cost of assets purchased, or the proceeds from assets sold, before the end of the reporting period. (d) the determination after the reporting period of the amount of profit-shari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his Standard requires a fundamental change in the basis of accounting, rather than an adjustment to the amounts recognised within the original basis of accounting. 16 Ind AS 1 specifies required disclosures if: (a) the financial statements are not prepared on a going concern basis; or (b) management is aware of material uncertainties related to events or conditions that may cast significant doubt upon the entity s ability to continue as a going concern. The events or conditions requiring disclosure may arise after the reporting period. Disclosure Date of approval for issue 17 An entity shall disclose the date when the financial statements were approved for issue and who gave that approval. If the entity s owners or others have the power to amend the financial statements after issue, the entity shall disclose that fact. 18 It is important for users to know when the financial statements were approved for issue, because the financial statements do not reflect events after this date. Updating disclosure about conditions at the end of the reporting period 19 If an entity receives information after the reporting period about conditions that exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of such transactions, other than when such transactions involve capitalisation or bonus issues, share splits or reverse share splits all of which are required to be adjusted under Ind AS 33); (g) abnormally large changes after the reporting period in asset prices or foreign exchange rates; (h) changes in tax rates or tax laws enacted or announced after the reporting period that have a significant effect on current and deferred tax assets and liabilities (see Ind AS 12, Income Taxes); (i) entering into significant commitments or contingent liabilities, for example, by issuing significant guarantees; and (j) commencing major litigation arising solely out of events that occurred after the reporting period. 2 [ Effective date 23-23B [Refer Appendix 1] 23C Definition of Material (Amendments to Ind AS 1 and Ind AS 8), amended paragraph 21. An entity shall apply those amendments when it applies the amendments to the definition of material in paragraph 7 of Ind AS 1 and paragraphs 5 and 6 of Ind AS 8. ] Appendix A Distribution of Non-cash Assets to Owners 1 This Appendix is an integral part of the Ind AS. Background 1 Somet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 In accordance with paragraph 5, this Appendix does not apply when an entity distributes some of its ownership interests in a subsidiary but retains control of the subsidiary. The entity making a distribution that results in the entity recognising a non-controlling interest in its subsidiary accounts for the distribution in accordance with Ind AS 110. 8 This Appendix addresses only the accounting by an entity that makes a non-cash asset distribution. It does not address the accounting by shareholders who receive such a distribution. Issues 9 When an entity declares a distribution and has an obligation to distribute the assets concerned to its owners, it must recognise a liability for the dividend payable. Consequently, this Appendix addresses the following issues: (a) When should the entity recognise the dividend payable? (b) How should an entity measure the dividend payable? (c) When an entity settles the dividend payable, how should it account for any difference between the carrying amount of the assets distributed and the carrying amount of the dividend payable? Accounting Principles When to recognise a dividend payable 10 The liabili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the asset to be distributed as of the end of the reporting period; and (c) the fair value of the asset to be distributed as of the end of the reporting period, if it is different from its carrying amount, and the information about the method(s) used to measure that fair value required by paragraphs 93(b), (d), (g) and (i) and 99 of Ind AS 113. Appendix 1 Note: This Appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is only to bring out the major differences, if any, between Indian Accounting Standard (Ind AS) 10 and the corresponding International Accounting Standard (IAS) 10, Events after the Reporting Period, and IFRIC 17, Distributions of Non-cash Assets to Owners, issued by the International Accounting Standards Board. Comparison with IAS 10, Events after the Reporting Period, and IFRIC 17 1 Different terminology is used in this standard, eg, the term balance sheet is used instead of Statement of financial position . The words approval of the financial statements for issue have been used instead of authorisation of the financial statements for issue in the context of financial statements considered for the pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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