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If company has made a decision to capitalise its subsidiary post reporting date but before FS are approved, and stated on an official management decision from post year-end meeting that this should be applicable at year end, is this an adjusting event?
in IAS 10 - Events After the Reporting Period by

2 Answers

0 votes
Adjusting events are the events which occur after reporting date but whose possibility of happening exist during the reporting period. There is an exception that if any event occurs whose possibility of happening not exist during the period under review but it has an effect over going concern assumption, then these events is to be adjusted.
In the given case, decision to capitalise the subsidiary not exist during the reporting the period so unless it is having an effect over going concern assumption, then same is not required to be adjusted.
by Level 1 Member (1.8k points)
0 votes
@Ayush9001 rightly described the situation. Jut wanted to add that although this event does not qualifies to be adjusted, the fact should be disclosed in the financial statements as it is a significant even occured after the balance sheet date and before finalisation of financial statements.
by Level 3 Member (7.2k points)