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Events after the Reporting Period

Ind AS - 010 - Rule - B. Indian Accounting Standards (Ind AS) - Companies Law - Ind AS - 010 - Indian Accounting Standard (Ind AS) 10 (This Indian Accounting Standard includes paragraphs set in bold type and plain type, which have equal authority. Paragraphs in bold type indicate the main principles.) Objective 1 The objective of this Standard is to prescribe: (a) When an entity should adjust its financial statements for ; and (b) the disclosures that an entity should give about the date when th .....

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eriod 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 ); and (b) those that are indicative of conditions that arose after the reporting period (non-adjusting ). Notwithstanding anything contained above, where there .....

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tatutory requirements and procedures followed in preparing and finalising the financial statements. 5 In some cases, an entity is required to submit its financial statements to its shareholders for approval after the financial statements have been approved by the Board for issue. In such cases, the financial statements are approved for issue on the date of approval by the Board, not the date when shareholders approve the financial statements. 6 In some cases, the management of an entity is requi .....

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pervisory board approves the financial statements on 26 March 20X2. The financial statements are made available to shareholders and others on 1 April 20X2. The shareholders approve the financial statements at their annual meeting on 15 May 20X2 and the financial statements are then filed with a regulatory body on 17 May 20X2. The financial statements are approved for issue on 18 March 20X2 (date of management approval for issue to the supervisory board). 7 include all events up to the date when .....

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t after the reporting period of a court case that confirms that the entity had a present obligation at the end of the reporting 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 .....

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ce 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-sharing or bonus payments, if the entity had a present legal or constructive obligation at the end of the reporting period to make such payments as a result of events before that date (see Ind AS 19, .....

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to the condition of the investments at the end of the reporting period, but reflects circumstances that have arisen subsequently. Therefore, an entity does not adjust the amounts recognised in its financial statements for the investments. Similarly, the entity does not update the amounts disclosed for the investments as at the end of the reporting period, although it may need to give additional disclosure under paragraph 21. Dividends 12 If an entity declares dividends to holders of equity inst .....

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Ind AS 1, Presentation of Financial Statements. Going concern 14 An entity shall not prepare its financial statements on a going concern basis if management determines after the reporting period either that it intends to liquidate the entity or to cease trading, or that it has no realistic alternative but to do so. 15 Deterioration in operating results and financial position after the reporting period may indicate a need to consider whether the going concern assumption is still appropriate. If t .....

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ty 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 f .....

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d after the reporting period, even when the information does not affect the amounts that it recognises in its financial statements. One example of the need to update disclosures is when evidence becomes available after the reporting period about a contingent liability that existed at the end of the reporting period. In addition to considering whether it should recognise or change a provision under Ind AS 37, an entity updates its disclosures about the contingent liability in the light of that ev .....

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in disclosure: (a) a major business combination after the reporting period Ind AS 103, Business Combinations, requires specific disclosures in such cases) or disposing of a major subsidiary; (b) announcing a plan to discontinue an operation; (c) major purchases of assets, classification of assets as held for sale in accordance with Ind AS 105, Non-current Assets Held for Sale and Discontinued Operations, other disposals of assets, or expropriation of major assets by government; (d) the destructi .....

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red 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 solel .....

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n how an entity should measure distributions to its owners (commonly referred to as dividends). Ind AS 1 requires an entity to present details of dividends recognised as distributions to owners either in the statement of changes in equity or in the notes to the financial statements. Scope 3 This Appendix applies to the following types of non-reciprocal distributions of assets by an entity to its owners acting in their capacity as owners: (a) distributions of non-cash assets (eg items of property .....

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rties before and after the distribution. This exclusion applies to the separate, individual and consolidated financial statements of an entity that makes the distribution. 6 In accordance with paragraph 5, this Appendix does not apply when the non-cash asset is ultimately controlled by the same parties both before and after the distribution. Paragraph 7 of Appendix C to Ind AS 103 states that A group of individuals shall be regarded as controlling an entity when, as a result of contractual arran .....

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er the entity making the distribution. 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 do .....

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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 liability to pay a dividend shall be recognised when the dividend is appropriately authorised and is no longer at the discretion of the entity, which is the date: (a) when declaration of the dividend, eg by management or the board of directors, is approved by the relevant authority, eg the shareholders, if the .....

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able by considering both the fair value of each alternative and the associated probability of owners selecting each alternative. 13 At the end of each reporting period and at the date of settlement, the entity shall review and adjust the carrying amount of the dividend payable, with any changes in the carrying amount of the dividend payable recognised in equity as adjustments to the amount of the distribution. Accounting for any difference between the carrying amount of the assets distributed an .....

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applicable: (a) the carrying amount of the dividend payable at the beginning and end of the period; and (b) the increase or decrease in the carrying amount recognised in the period in accordance with paragraph 13 as result of a change in the fair value of the assets to be distributed. 17 If, after the end of a reporting period but before the financial statements are approved for issue, an entity declares a dividend to distribute a non-cash asset, it shall disclose: (a) the nature of the asset to .....

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