The accounting treatment for events after the reporting period depends on whether the events are "adjusting events" or "non-adjusting events."

Question

Quizplus · Accepted Answer

Adjusting events provide evidence of conditions that existed at the end of the reporting period and require adjustments to the financial statements, while non-adjusting events are indicative of conditions that arose after the reporting period and do not require adjustments to the previously issued financial statements, but may require disclosure.

The Accounting Treatment for Events After the Reporting Period Depends