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AASB 110 - Events after the Balance Sheet Date
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Summary 
Developments, Key Differences & History 
Compared to IFRS 
Interpretations 
Rejection Notices 
Questions & Answers 
Articles 
AASB website 

 
Currency of material 
This material was last updated in August 2008.  
 
Overview 
AASB 110 Events after the Balance Sheet Date is equivalent to IAS 10 of the same name as issued by the International Accounting Standards Board. The objective of AASB 110 is to prescribe when an entity should adjust its financial statements for events after reporting date and related disclosures. It is applicable for annual reporting periods beginning on or after 1 January 2005. 
 
 
Main Requirements 
The main requirements of AASB 110 are: 
 
Application and Scope (paragraphs 1-2) 
This standard applies in the accounting for, and disclosure of, events after the reporting date (note that balance sheet date means reporting date). 
 
Definitions (paragraphs 3-7) 
Defines events after reporting date, adjusting events and non-adjusting events. 
 
Recognition and measurement (paragraphs 8-13) 
  • Adjusting events after the reporting date must be reflected in the amounts recognised in the financial statements. For example:
    • Settlement after reporting date of a court case that the entity had either previously provided for or disclosed as a contingent liability in accordance with AASB 137.
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    • Receiving information after reporting date that an asset was impaired at reporting date.
  • Non-adjusting events after the reporting date must not be reflected in the amounts recognised in the financial statements.
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  • Dividends proposed or declared on equity instruments after the reporting date must not be recognised as a liability.
Going concern (paragraphs 14-16) 
The going concern basis must not be applied if events after the reporting date indicate that it is no longer appropriate. 
 
Disclosure (paragraphs 17-22) 
Includes:
  • Date when the financial report was authorised for issue, and who have that authorisation.
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  • Updating disclosures about conditions at reporting date, when new information is received after reporting date.
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  • For each material category of non-adjusting event after the reporting date, disclosure of the nature and an estimate of the financial effect, or a statement that an estimate cannot be made.
 
The information provided is a brief summary of the requirements of this standard and is not intended to be used as a substitute for reading the standard itself nor does it attempt to provide any interpretative advice. To apply the standard to their particular circumstances readers are encouraged to read the text of the standard and, if necessary, seek professional advice from a Chartered Accountant or other suitably qualified professional. The Institute expressly disclaims all liability for any loss or damage arising from reliance upon any information or inaccurate statement made in this summary.