But there can be events after that date which

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But there can be events after that date which identify or clarify such conditions. 24
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Events occurring after the end of the reporting date Paragraph 3 of AASB 110/IAS 10 defines events after the reporting period as follows. ‘Events after the reporting period are those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue.’ 25
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Events occurring after the end of the reporting date Adjusting events after the end of the reporting period: Events occurring between the end of the reporting period and the date the financial statements are authorised for issue and that provide evidence of conditions that existed at the end of the reporting period. 26
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Events occurring after the end of the reporting date Adjusting events after the end of the reporting period: Referred to as adjusting events. The financial effect of adjusting events to be reflected in the financial statements prepared at the end of the reporting period. 27
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Events occurring after the end of the reporting date Non-adjusting events after the end of the reporting period: Events that are indicative of conditions that arose after the end of the reporting period. Must be disclosed by way of note to the financial statements. If the financial effect of the event cannot be reliably estimated, the note should disclose this fact. 28
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Events occurring after the end of the reporting date If an event after the reporting date leads management to determine that the entity will liquidate or cease trading, intentionally or otherwise, paragraph 14 of AASB 110/IAS 10 prohibits the entity from preparing its accounts on a going concern basis. Accordingly, the financial statements would need to be redrafted using liquidation values for the entity’s net assets as these values would be deemed more relevant to the circumstances of the entity and the needs of the user. 29
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Summary How accounting policies and changes to accounting policies are disclosed in general purpose financial statements. How changes in accounting estimates are accounted for and disclosed in general purpose financial statements. How prior period errors arise, and how they are accounted for and disclosed in general purpose financial statements. 30
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Summary The requirements when it is impracticable to make retrospective adjustments for changes in accounting policies or correction of errors. The concept of materiality and how material items are identified. The difference between types of events occurring after the end of the reporting period and how they are to be treated in the financial statements. 31
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