[Illustrative Checklist] Disclosure requirements under Ind AS 10 | Events after the Reporting Period

The objective of Ind AS 10: Events after the Reporting Period, is to prescribe that:

• • when an entity should adjust its financial statements for events after the reporting period; and
  • the disclosure that an entity should give about the date when the financial statement was approved for the issue and about events after the reporting period

Further, this standard also requires that an entity should not prepare its financials on a going concern basis where events after the reporting period indicate that the going concern assumption is not appropriate.

As per the requirement of this Ind AS, an entity is required to follow the below-mentioned disclosure requirements:

Where the entity has declared its dividend after the reporting period but before the financial statements are approved for the issue, the dividends are not recognized as a liability at the end of the reporting period because no obligation exists at that time. Whether such dividends are disclosed in the notes in accordance with Ind AS 1.

• • An entity shall disclose the date when the financial statements were approved for the 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.
  • If an entity receives information after the reporting period about conditions that existed at the end of the reporting period, it shall update disclosures that relate to those conditions, in the light of the new information.

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