Financial reporting - post balance sheet events.
For financial reporting purposes, a non-adjusting event is an event after the reporting period that is indicative of a condition that arose after the end of the reporting period.
Distinguished from an adjusting event, that provides further evidence of conditions that existed at the end of the reporting period.
Financial reporting standards, for example IAS 10, require that:
- The financial statements are not adjusted in respect of non-adjusting events.
- Non-adjusting events be disclosed if they are of such importance that non-disclosure would affect the ability of users to make proper evaluations and decisions. The required disclosure is (a) the nature of the event and (b) an estimate of its financial effect - or a statement that a reasonable estimate of the effect cannot be made.
Non-adjusting events include dividends declared after the end of the reporting period.