1

Myanmar Accounting Standard 10

Events after the Reporting Period
CONTENTS
paragraphs
OBJECTIVE 1
SCOPE 2
DEFINITIONS !"
#ECO$NITION AND MEAS%#EMENT &!1
Ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod &!.
Non/ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod 10!11
Di*id)nd( 12!1
$OIN$ CONCE#N 10!11
DISC2OS%#E 1"!22
Dat) o+ aut,ori(ation +or i((u) 1"!1&
%-dating di(c3o(ur) a4out condition( at t,) )nd o+ t,) r)-orting
-)riod
1.!20
Non/ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod 21!22
Myanmar Financial Reporting Standards/MAS10
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Myanmar Accounting Standard 10 Events after the
Reporting Period
O4')cti*)
1 The objective of this Standard is to prescribe:
(a) when an entity should adjust its financial stateents for events after the reporting period! and
(b) the disclosures that an entity should give about the date when the financial stateents were authorised
for issue and about events after the reporting period"
The Standard also re#uires that an entity should not prepare its financial stateents on a going concern basis if
events after the reporting period indicate that the going concern assuption is not appropriate"
Sco-)
2 T,i( Standard (,a33 4) a--3i)d in t,) accounting +or5 and di(c3o(ur) o+5 )*)nt( a+t)r t,) r)-orting -)riod6
D)+inition(
T,) +o33o7ing t)rm( ar) u()d in t,i( Standard 7it, t,) m)aning( (-)ci+i)d8
Events after the reporting period ar) t,o() )*)nt(5 +a*oura43) and un+a*oura43)5 t,at occur 4)t7))n t,)
)nd o+ t,) r)-orting -)riod and t,) dat) 7,)n t,) +inancia3 (tat)m)nt( ar) aut,ori()d +or i((u)6 T7o ty-)(
o+ )*)nt( can 4) id)nti+i)d8
9a: t,o() t,at -ro*id) )*id)nc) o+ condition( t,at );i(t)d at t,) )nd o+ t,) r)-orting -)riod
9adjusting events after the reporting period:< and
94: t,o() t,at ar) indicati*) o+ condition( t,at aro() a+t)r t,) r)-orting -)riod 9non-adjusting events
after the reporting period:6
$ The process involved in authorising the financial stateents for issue will vary depending upon the anageent
structure% statutory re#uireents and procedures followed in preparing and finalising the financial stateents"
& 'n soe cases% an entity is re#uired to subit its financial stateents to its shareholders for approval after the
financial stateents have been issued" 'n such cases% the financial stateents are authorised for issue on the date
of issue% not the date when shareholders approve the financial stateents"
E;am-3)
The anageent of an entity copletes draft financial stateents for the year to (1 )eceber *+,1 on *- .ebruary
*+,*" /n 1- 0arch *+,*% the board of directors reviews the financial stateents and authorises the for issue" The entity
announces its profit and selected other financial inforation on 11 0arch *+,*" The financial stateents are ade
available to shareholders and others on 1 2pril *+,*" The shareholders approve the financial stateents at their annual
eeting on 1& 0ay *+,* and the approved financial stateents are then filed with a regulatory body on 13 0ay *+,*"
The financial statements are authorised for issue on 18 March 20X2 (date of board authorisation for issue).
4 'n soe cases% the anageent of an entity is re#uired to issue its financial stateents to a supervisory board
(ade up solely of non5e6ecutives) for approval" 'n such cases% the financial stateents are authorised for issue
when the anageent authorises the for issue to the supervisory board"
Myanmar Financial Reporting Standards/MAS10
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E;am-3)
/n 1- 0arch *+,*% the anageent of an entity authorises financial stateents for issue to its supervisory board" The
supervisory board is ade up solely of non5e6ecutives and ay include representatives of eployees and other outside
interests" The supervisory board approves the financial stateents on *4 0arch *+,*" The financial stateents are ade
available to shareholders and others on 1 2pril *+,*" The shareholders approve the financial stateents at their annual
eeting on 1& 0ay *+,* and the financial stateents are then filed with a regulatory body on 13 0ay *+,*"
The financial statements are authorised for issue on 18 March 20X2 (date of management authorisation for issue to the
supervisory board).
3 Events after the reporting period include all events up to the date when the financial stateents are authorised
for issue% even if those events occur after the public announceent of profit or of other selected financial
inforation"
#)cognition and m)a(ur)m)nt
Ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod
& An )ntity (,a33 ad'u(t t,) amount( r)cogni()d in it( +inancia3 (tat)m)nt( to r)+3)ct ad'u(ting )*)nt( a+t)r
t,) r)-orting -)riod6
1 The following are e6aples of adjusting events after the reporting period that re#uire an entity to adjust the
aounts recognised in its financial stateents% or to recognise ites that were not previously recognised:
(a) the settleent after the reporting period of a court case that confirs that the entity had a present
obligation at the end of the reporting period" The entity adjusts any previously recognised provision
related to this court case in accordance with 02S (3 rovisions! "ontingent #iabilities and
"ontingent $ssets or recognises a new provision" The entity does not erely disclose a contingent
liability because the settleent provides additional evidence that would be considered in accordance
with paragraph 14 of 02S (3"
(b) the receipt of inforation after the reporting period indicating that an asset was ipaired at the end of
the reporting period% or that the aount of a previously recognised ipairent loss for that asset
needs to be adjusted" .or e6aple:
(i) the ban7ruptcy of a custoer that occurs after the reporting period usually confirs that a
loss e6isted at the end of the reporting period on a trade receivable and that the entity needs
to adjust the carrying aount of the trade receivable! and
(ii) the sale of inventories after the reporting period ay give evidence about their net realisable
value at the end of the reporting period"
(c) the deterination after the reporting period of the cost of assets purchased% or the proceeds fro
assets sold% before the end of the reporting period"
(d) the deterination after the reporting period of the aount of profit5sharing or bonus payents% if the
entity had a present legal or constructive obligation at the end of the reporting period to a7e such
payents as a result of events before that date (see 02S 11 %mployee &enefits)"
(e) the discovery of fraud or errors that show that the financial stateents are incorrect"
Non/ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod
10 An )ntity (,a33 not ad'u(t t,) amount( r)cogni()d in it( +inancia3 (tat)m)nt( to r)+3)ct non/ad'u(ting
)*)nt( a+t)r t,) r)-orting -)riod6
11 2n e6aple of a non5adjusting event after the reporting period is a decline in ar7et value of investents
between the end of the reporting period and the date when the financial stateents are authorised for issue" The
decline in ar7et value does not norally relate to the condition of the investents at the end of the reporting
period% but reflects circustances that have arisen subse#uently" Therefore% an entity does not adjust the
aounts recognised in its financial stateents for the investents" Siilarly% the entity does not update the
Myanmar Financial Reporting Standards/MAS10
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aounts disclosed for the investents as at the end of the reporting period% although it ay need to give
additional disclosure under paragraph *1"
Di*id)nd(
12 I+ an )ntity d)c3ar)( di*id)nd( to ,o3d)r( o+ )=uity in(trum)nt( 9a( d)+in)d in MAS 2 Financial
Instruments: Presentation: a+t)r t,) r)-orting -)riod5 t,) )ntity (,a33 not r)cogni() t,o() di*id)nd( a( a
3ia4i3ity at t,) )nd o+ t,) r)-orting -)riod6
1( 'f dividends are declared after the reporting period but before the financial stateents are authorised for issue%
the dividends are not recognised as a liability at the end of the reporting period because no obligation e6ists at
that tie" Such dividends are disclosed in the notes in accordance with 02S 1 resentation of 'inancial
(tatements"
$oing conc)rn
10 An )ntity (,a33 not -r)-ar) it( +inancia3 (tat)m)nt( on a going conc)rn 4a(i( i+ manag)m)nt d)t)rmin)(
a+t)r t,) r)-orting -)riod )it,)r t,at it int)nd( to 3i=uidat) t,) )ntity or to c)a() trading5 or t,at it ,a( no
r)a3i(tic a3t)rnati*) 4ut to do (o6
1& )eterioration in operating results and financial position after the reporting period ay indicate a need to
consider whether the going concern assuption is still appropriate" 'f the going concern assuption is no longer
appropriate% the effect is so pervasive that this Standard re#uires a fundaental change in the basis of
accounting% rather than an adjustent to the aounts recognised within the original basis of accounting"
14 02S 1 specifies re#uired disclosures if:
(a) the financial stateents are not prepared on a going concern basis! or
(b) anageent is aware of aterial uncertainties related to events or conditions that ay cast significant
doubt upon the entity8s ability to continue as a going concern" The events or conditions re#uiring
disclosure ay arise after the reporting period"
Di(c3o(ur)
Dat) o+ aut,ori(ation +or i((u)
1" An )ntity (,a33 di(c3o() t,) dat) 7,)n t,) +inancia3 (tat)m)nt( 7)r) aut,ori()d +or i((u) and 7,o ga*)
t,at aut,ori(ation6 I+ t,) )ntity>( o7n)r( or ot,)r( ,a*) t,) -o7)r to am)nd t,) +inancia3 (tat)m)nt( a+t)r
i((u)5 t,) )ntity (,a33 di(c3o() t,at +act6
1- 't is iportant for users to 7now when the financial stateents were authorised for issue% because the financial
stateents do not reflect events after this date"
%-dating di(c3o(ur) a4out condition( at t,) )nd o+ t,) r)-orting -)riod
1. I+ an )ntity r)c)i*)( in+ormation a+t)r t,) r)-orting -)riod a4out condition( t,at );i(t)d at t,) )nd o+ t,)
r)-orting -)riod5 it (,a33 u-dat) di(c3o(ur)( t,at r)3at) to t,o() condition(5 in t,) 3ig,t o+ t,) n)7
in+ormation6
*+ 'n soe cases% an entity needs to update the disclosures in its financial stateents to reflect inforation received
after the reporting period% even when the inforation does not affect the aounts that it recognises in its
financial stateents" /ne e6aple of the need to update disclosures is when evidence becoes available after
the reporting period about a contingent liability that e6isted at the end of the reporting period" 'n addition to
considering whether it should recognise or change a provision under 02S (3% an entity updates its disclosures
about the contingent liability in the light of that evidence"
Myanmar Financial Reporting Standards/MAS10
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Non/ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod
21 I+ non/ad'u(ting )*)nt( a+t)r t,) r)-orting -)riod ar) mat)ria35 non/di(c3o(ur) cou3d in+3u)nc) t,)
)conomic d)ci(ion( t,at u()r( ma?) on t,) 4a(i( o+ t,) +inancia3 (tat)m)nt(6 According3y5 an )ntity (,a33
di(c3o() t,) +o33o7ing +or )ac, mat)ria3 cat)gory o+ non/ad'u(ting )*)nt a+t)r t,) r)-orting -)riod8
9a: t,) natur) o+ t,) )*)nt< and
94: an )(timat) o+ it( +inancia3 )++)ct5 or a (tat)m)nt t,at (uc, an )(timat) cannot 4) mad)6
** The following are e6aples of non5adjusting events after the reporting period that would generally result in
disclosure:
(a) a ajor business cobination after the reporting period (0.RS ( &usiness "ombinations re#uires
specific disclosures in such cases) or disposing of a ajor subsidiary!
(b) announcing a plan to discontinue an operation!
(c) ajor purchases of assets% classification of assets as held for sale in accordance with 0.RS & )on*
current $ssets +eld for (ale and ,iscontinued -perations% other disposals of assets% or e6propriation
of ajor assets by governent!
(d) the destruction of a ajor production plant by a fire after the reporting period!
(e) announcing% or coencing the ipleentation of% a ajor restructuring (see 02S (3)!
(f) ajor ordinary share transactions and potential ordinary share transactions after the reporting period
(02S (( %arnings per (hare re#uires an entity to disclose a description of such transactions% other
than when such transactions involve capitalisation or bonus issues% share splits or reverse share splits
all of which are re#uired to be adjusted under 02S (()!
(g) abnorally large changes after the reporting period in asset prices or foreign e6change rates!
(h) changes in ta6 rates or ta6 laws enacted or announced after the reporting period that have a significant
effect on current and deferred ta6 assets and liabilities (see 02S 1* .ncome Ta/es)!
(i) entering into significant coitents or contingent liabilities% for e6aple% by issuing significant
guarantees! and
(j) coencing ajor litigation arising solely out of events that occurred after the reporting period"
Myanmar Financial Reporting Standards/MAS10