Ind AS 10: Events after the Reporting Period

Standard orientation

What Ind AS 10 is designed to achieve

Prescribe when financial statements are adjusted for events after the reporting period and what must be disclosed about authorisation and material non-adjusting events.

Scope: Applies to accounting for and disclosure of events occurring between the reporting date and the date the financial statements are approved for issue by the board or corresponding approving authority.

Adjusting event

Provides evidence of a condition existing at the reporting date; recognised amounts and disclosures are updated.

Non-adjusting event

Indicates a condition arising after the reporting date; amounts are not adjusted, but material events are disclosed.

Authorisation date

The date the board or corresponding authority approves the financial statements for issue—not a later shareholder approval date.

Going concern

Can override ordinary adjusting/non-adjusting analysis when the basis of preparation is no longer appropriate.

How to use this page: The paragraph register paraphrases the notified requirements and preserves paragraph references for navigation. It does not reproduce or replace the official text.

Full standard map

Paragraph-by-paragraph register

This register covers the complete operative sequence, including deleted/reserved and transition paragraphs where relevant. Closely connected paragraphs are grouped to avoid artificial repetition.

Paragraphs	Requirement and Finin2min decode
1	Objective Sets the adjustment and disclosure rules and prohibits going-concern preparation when post-reporting events make that basis inappropriate.
2	Scope Applies to accounting for and disclosure of events after the reporting period.
3	Definitions Defines events after reporting period, adjusting events and non-adjusting events; the 2025 amendment replaces outdated covenant terminology.
4–7	Authorisation process The reporting window ends when the financial statements are approved for issue by the board or corresponding authority. Shareholder approval after issue does not extend the window.
8	Adjusting events—principle Adjust recognised amounts to reflect events that provide evidence of conditions existing at reporting date.
9	Adjusting-event examples Includes customer bankruptcy confirming credit loss, settlement confirming an obligation, information about asset cost/NRV, profit-sharing amounts, fraud or errors.
10	Non-adjusting events—principle Do not adjust amounts for conditions arising after the reporting period.
11	Market-value example A post-year-end fall in investment value generally reflects later conditions and is non-adjusting, unless it provides evidence about a reporting-date condition.
12–13	Dividends Dividends declared after reporting date are not recognised as a liability at reporting date; disclose as required.
14	Going-concern basis Do not prepare on a going-concern basis if management intends liquidation/cessation or has no realistic alternative.
15–16	Deterioration and disclosure Severe post-year-end deterioration may require reconsideration of going concern; material uncertainties and non-going-concern basis are addressed under presentation requirements.
17–18	Authorisation disclosures Disclose the date authorised for issue, who authorised, and whether owners or others can amend the statements after issue.
19–20	Updating disclosures Update disclosures about reporting-date conditions when new information is received, even if recognised amounts are unchanged.
21–22	Material non-adjusting events Disclose nature and estimated financial effect, or state that an estimate cannot be made. Examples include major combinations, restructurings, fires, share transactions, tax changes, commitments and litigation arising later.
23–23CA	Effective date and Indian covenant transition Tracks amendments. The 2025 Indian covenant-related closing paragraph remains relevant for the transitional annual period and is omitted for periods beginning on or after 1 April 2026.
Appendix A.1–A.3	Scope of non-cash distributions to owners Applies to pro-rata non-cash asset distributions to owners, excluding specified common-control and exchange arrangements.
Appendix A.4–A.7	Recognition and measurement of dividend payable Recognise when appropriately authorised and no longer at the entity’s discretion; measure at fair value of assets to be distributed.
Appendix A.8–A.10	Remeasurement and settlement Remeasure the payable at each reporting date with equity adjustment; recognise the settlement difference in profit or loss.
Appendix A.11–A.13	Presentation, disclosure and transition Present settlement difference separately and disclose relevant distribution information; apply the specified transition.

Major areas decoded

Technical requirements in simple language

Authorisation date

For a company, the board approval date generally ends the Ind AS 10 window even if shareholders later adopt the accounts. Different governance structures require identification of the corresponding approving authority.

Evidence versus new condition

The event date alone does not determine treatment. Ask whether the event confirms facts already existing at year-end or creates a new condition afterward.

Material non-adjusting events

No journal entry does not mean no reporting. Users may need nature, amount, uncertainty and management response.

Dividends

A proposed or declared post-year-end dividend is not a reporting-date obligation because the entity had discretion at year-end.

Going concern

A later event can be so fundamental that the financial statements require a different basis of preparation. This is not merely a post-balance-sheet note.

Covenant transition

The FY 2025–26 Indian relief and FY 2026–27 reporting-date-right approach must be applied using the commencement date of the annual period, not merely the balance-sheet date.

Improved visual learning

Finin2min decision map

Finin2min visual decision map for Ind AS 10 Events after the Reporting Period

Downloadable SVG and high-resolution PNG versions are included in this batch’s assets folder. The SVG remains sharp on desktop, mobile and print.

Exceptions and high-risk points

What professionals frequently overlook

An event after year-end can be adjusting even when the final amount becomes known later, if it confirms a year-end condition.
A post-year-end market movement is usually non-adjusting, but entity-specific evidence can alter the conclusion.
Dividends declared after year-end are disclosed but not accrued at year-end.
Material non-adjusting events require disclosure even though amounts are unchanged.
Going concern is a basis-of-preparation issue and can override the ordinary no-adjustment rule.
For FY 2025–26, the special Indian covenant waiver treatment must be read with Ind AS 1 and Ind AS 107.

Practical application

Transaction examples

Fact pattern

Treatment

Reason

Customer bankruptcy in April caused by long-standing March financial distress

Adjusting

Confirms reporting-date credit impairment.

Factory destroyed by an April fire unrelated to year-end conditions

Non-adjusting

The damaging condition arose after year-end; disclose if material.

Court settlement in May confirms a present obligation at 31 March

Adjusting

Update the provision to the settlement evidence.

Major acquisition signed after year-end

Non-adjusting

No reporting-date transaction; disclose nature and estimated effect if material.

Dividend declared by board after year-end

Non-adjusting

No liability existed at reporting date.

Fraud discovered after year-end affecting prior-year revenue

Adjusting / error correction

Correct the financial statements; consider Ind AS 8.

CA / finance / boardroom cases

Applied case studies

1. Approval date ambiguity

Application case

The board approves statements on 20 May; shareholders approve them on 30 June.

Finin2min analysis: The Ind AS 10 event window normally ends on 20 May. Disclose the authorisation date and approving body.

2. Inventory sale after year-end

Application case

Inventory costing ₹12 crore is sold in April for ₹8 crore after normal selling costs.

Finin2min analysis: Assess whether the sale provides evidence of NRV at 31 March. If it confirms year-end conditions, adjust inventory under Ind AS 2.

3. Post-year-end lawsuit

Application case

A lawsuit is filed in April over an incident that occurred in February.

Finin2min analysis: The filing may provide evidence about a reporting-date obligation. Assess Ind AS 37 and adjust if the condition existed at year-end.

4. New regulatory ban

Application case

A regulator bans the entity’s main product in May due to a policy decision made after year-end.

Finin2min analysis: Usually non-adjusting, but disclose if material and reassess going concern.

5. Covenant waiver for 31 March 2027 breach

Application case

A waiver is obtained before board approval but after reporting date.

Finin2min analysis: For annual periods beginning on or after 1 April 2026, the post-year-end waiver does not create a reporting-date right; classify under revised Ind AS 1 and disclose the non-adjusting event as relevant.

Global comparison

Ind AS versus IFRS and US GAAP

Topic	Ind AS	IFRS	US GAAP
Adjusting principle	Evidence of reporting-date condition.	Broadly aligned with IAS 10.	US GAAP recognises recognised versus nonrecognised subsequent events; core principle is similar.
Authorisation/issuance date	Board or corresponding authority approval date.	Broadly similar, subject to governance.	US GAAP window extends to issuance or availability for issuance, depending on entity type.
Reissuance	Ind AS focuses on the original approval framework.	IAS 10 broadly similar.	US GAAP can require evaluation of subsequent events for reissued statements differently.
Dividends after year-end	No liability at reporting date.	Same under IAS 10.	US GAAP treatment depends on declaration and legal framework but generally no year-end liability if declared later.
Covenant transition	Specific Indian FY 2025–26 relief; changed from FY 2026–27.	No equivalent Indian carve-out in IAS 10.	Debt classification follows US GAAP refinancing/waiver guidance.

Comparison caution: “Broadly aligned” does not mean identical. Entity type, transition date, local corporate law and regulator-specific rules can change the answer.

Implementation lens

Implications for key stakeholders

CFO

Maintain a post-close event log through board approval and integrate finance, legal, tax, treasury and operations.

Board

Understand which post-year-end developments change numbers, require disclosure or undermine going concern.

Legal

Identify litigation, settlements, contractual rights and the exact effective dates of waivers or amendments.

Treasury

Escalate refinancing, covenant and liquidity developments immediately.

Auditor / controls

Perform subsequent-receipt, payment, legal-letter and board-minute procedures through the relevant date.

Quality-control watchlist

Common errors and exam traps

Using the AGM date instead of the board approval date.
Treating every post-year-end event as non-adjusting because it occurred later.
Accruing dividends declared after year-end.
Failing to disclose a material non-adjusting acquisition, fire or financing event.
Using information that arose later without assessing whether it evidences a year-end condition.
Treating a going-concern failure as a note-only matter.
Applying FY 2025–26 covenant relief to periods beginning on or after 1 April 2026.
Failing to update a note about a reporting-date condition when new evidence arrives.
Not quantifying the estimated effect—or explaining why it cannot be estimated.
Overlooking Appendix A for non-cash distributions to owners.

Finin2min Q&A

Frequently asked questions

1. What is the event window?

From the reporting date to the date the financial statements are approved for issue by the board or corresponding authority.

2. Does shareholder approval extend the window?

Normally no, when the board has already approved the financial statements for issue.

3. Is a customer bankruptcy after year-end always adjusting?

Only when it confirms a credit condition that existed at year-end.

4. Is a major fire after year-end adjusted?

Usually not if the fire arose afterward, but material disclosure and going-concern assessment may be required.

5. Are dividends declared after year-end accrued?

No. They are disclosed as required.

6. Can a non-adjusting event still change the basis of preparation?

Yes. A post-year-end event showing that going concern is no longer appropriate can require a different basis.

Two-minute revision

Finin2min cheat sheet

EVIDENCE test = Existing condition? Adjust · New condition? Disclose if material · No going concern? Change basis

Use the visual map together with the paragraph register. For a final accounting conclusion, document facts, contractual terms, materiality, relevant cross-standards and the current notification date.

Validation register

Primary and authoritative sources

ICAI Compendium 2025–26, Volume IIPrimary or authoritative reference used for validation.
Open official source ↗

MCA Second Amendment Rules, 2025Primary or authoritative reference used for validation.
Open official source ↗

IFRS Foundation — IAS 10Primary or authoritative reference used for validation.
Open official source ↗

FASB — Subsequent Events ASU 2010-09Primary or authoritative reference used for validation.
Open official source ↗

Review date: 26 June 2026. Recheck MCA notifications and the latest ICAI compendium for reporting periods after this date.