In part 14 of this exclusive new UK GAAP series, we will focus on new UK GAAP and accounting for reporting the post balance sheet events under section 32, highlighting key differences between FRS 102 and the old FRS 21 treatment
Events which fall into post balance sheet events, both favourable and unfavourable, are those 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:
- 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
- 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).
Importantly, the reporting period is clearly delimited: it ends at the point that the financial statements are authorised for issue, not when they are approved by shareholders, when public announcements of results are made, or any other date.
