Financial Reporting Standard 10: Events after the Reporting Period

Financial Reporting Standard 10 Events after the Reporting Period

You might need to adjust the financial statement of the company after the reporting duration. The Financial Reporting Standard 10 prescribes the procedure of carrying out the adjustments and also clarifies the required disclosures the release date of the company’s financial statement and the occasions that included after the reporting duration. Here is a guideline to help you to comprehend the FRS 10.

Going Concern

According to FRS 10, if the events after the reporting duration reveal that the going concern assumption is unneeded, businesses should not prepare their business records in regards to going concern. Hence, you have to know if the going concern assumption is suitable (Also see Basic accounting concepts). The FRS 10 needs you to make essential modifications in your basis of accounting if you discover that the going concern principle is unsuitable. These changes in some cases might be complicated (Also see Financial Reporting Standard 11 Construction Contracts).


After the reporting duration, if your company claims dividends to equity instruments holders, these dividends must not be acknowledged as liabilities. These dividends need to be shown in the notes section based on FRS 1 Presentation of the Financial Statements.


Your company need to disclose the financial statements when it is approved for the issue. It must reveal who authorised the financial statements. The business owners have the power to modify the financial statements after issue, and this needs to be disclosed.

Often, after the reporting period, your company might receive crucial information relating to conditions that were around the end of the reporting time. In this case, you must update all disclosures about those conditions, sometimes including errors as per FRS 8: Accounting Policies, Changes in Accounting Estimates. These updates are very crucial to individuals and other companies that need your company’s financial statements.

Nevertheless, not all the occasions that happen after the reporting duration need adjustments in the financial statements. Non-disclosure could impact the economic decisions made by individuals who utilise your company’s financial statements. Hence, your company must disclose the nature of the occasion and forecast the financial impact of the event.


It is essential for all business owners to understand that FRS 10 in accounting fully. All businesses must follow this standard when preparing accounting. Do not hesitate to contact any accounting service in Johor Bahru for further information.

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