Ind AS 10 (Events after the Reporting Period) is the Indian Accounting Standard that governs how companies treat events occurring between the end of the reporting period and the date of authorisation of financial statements.

The Ministry of Corporate Affairs notified Ind AS 10 via the Companies (Indian Accounting Standards) Rules, 2015. It became mandatory from 1 April 2016 for Phase I companies. Ind AS 10 replaced AS 4 for all Ind AS-applicable entities and is converged with IAS 10 issued by the International Accounting Standards Board (IASB).

For FY 2026-27, listed companies must coordinate Ind AS 10 disclosures with Securities and Exchange Board of India (SEBI) material event requirements. Stock exchange filings on significant post-year-end events directly impact what must be disclosed under Ind AS 10.

Ind AS 10 at a Glance

Ind AS 10 establishes how entities report and disclose events that occur after the reporting period but before financial statements are authorised for issue. Its core principle is to distinguish between adjusting and non-adjusting events. The standard primarily serves preparers and auditors of financial statements in companies following Indian Accounting Standards.

What is Ind AS 10: Events after the Reporting Period?

Ind AS 10 sets out how an entity should account for significant events that happen between its balance sheet date and when its financial statements are formally authorised. These events can either require adjustment to amounts reported or only disclosure in notes if they are material but do not affect conditions at year-end.

The Institute of Chartered Accountants of India introduced this standard as part of India's convergence with International Financial Reporting Standards. It replaced earlier guidance in Accounting Standard (AS) 4 and aligns closely with IAS 10 issued by the International Accounting Standards Board.

This standard is most relevant to finance teams preparing annual accounts under Ind AS, statutory auditors forming audit opinions under SA 700, and company secretaries ensuring compliance with disclosure requirements.

Objective of Ind AS 10

The objectives of Ind AS 10 are:

• Prescribe when an entity should adjust its financial statements for events after the reporting period (adjusting events).
• Specify the disclosures an entity should give about the date when financial statements are authorised for issue and about events after the reporting period (non-adjusting events).
• Require disclosure of dividends declared after the reporting period as non-adjusting events in the notes.

These objectives ensure users receive a true and fair view as required by Section 129 of the Companies Act, 2013. Timely recognition or disclosure of significant post-year-end developments upholds transparency and comparability in corporate reporting.

Who Must Apply Ind AS 10?

Entities covered, applicability table

Ind AS 10 applies to all companies mandated to prepare financial statements under Indian Accounting Standards as notified by Ministry of Corporate Affairs. This includes:

All subsidiaries, associates, joint ventures or holding companies of these entities must also comply.

Scope exclusions

Ind AS 10 does not apply to:

• Events relating solely to going concern status where specific guidance requires disclosure rather than adjustment.

When the standard does not apply

If post-balance-sheet events relate exclusively to going concern uncertainty arising after year-end but before authorisation, specific guidance applies, typically requiring disclosure only unless going concern is no longer appropriate. Other areas such as contingencies fall under Ind AS 37.

Key Definitions under Ind AS 10

Recognition and Measurement under Ind AS 10

When to recognise

Under Para 8 of Ind AS 10, an entity must adjust its financial statements for adjusting events, those providing evidence about conditions that existed at year-end but became known only before accounts were authorised for issue. Non-adjusting events, arising from new conditions post year-end, are not recognised in figures but require note disclosure if material (Para 21).

Dividends declared by directors after year-end do not create a liability at balance sheet date; these are disclosed in notes per Para 12 rather than recognised as liabilities.

The going concern assessment is critical, if post-year-end developments make it inappropriate to prepare accounts on a going concern basis, figures must be adjusted accordingly (Para 14).

Initial measurement

When an adjusting event occurs, assets or liabilities reported at year-end must be revised based on new evidence received before authorisation date. For example:

Revised Carrying Amount = Original Carrying Amount ± Adjustment from Post-Year-End Evidence

Examples include settlement amounts decided by courts post-year-end relating to disputes existing at year-end; discovery that inventory was impaired as at balance sheet date; or confirmation that a customer was insolvent at year-end even if bankruptcy was filed later.

Subsequent measurement

For non-adjusting events, such as business combinations signed after year-end or natural disasters occurring subsequently, the entity does not alter balances as at reporting date. However, if these are material, Para 21 requires disclosure describing their nature and estimated financial effect or stating that such estimate cannot be made reliably.

Entities must also disclose any deterioration in operating results or position arising from such non-adjusting events where relevant for understanding users’ decisions.

Adjusting vs Non-Adjusting, The Crucial Distinction

The distinction turns on whether evidence relates to conditions already present at balance sheet date or new circumstances arising later. For instance:

A customer’s bankruptcy filed soon after year-end is typically an adjusting event if their deteriorating condition existed at year-end, even if formal insolvency proceedings began later.

A fire destroying inventory post-year-end is usually a non-adjusting event since it reflects a new condition entirely unrelated to prior circumstances.

Dividends proposed or declared by directors after balance sheet date are always non-adjusting under Para 12, a departure from legacy treatment under earlier standards like AS 4 which permitted liability recognition for proposed dividends.

If post-balance-sheet developments cast doubt on going concern status such that it becomes inappropriate, figures must be adjusted even if this fact emerges only before accounts are authorised (Para 14). In our audit practice we frequently observe management judgement being tested most acutely around these borderline cases, especially during economic downturns or sectoral stress periods.

Worked Examples on Ind AS 10

Example 1: Adjusting event, court settlement post-year-end

Sundaram Engineering Pvt Ltd was sued by a supplier for Rs 3 crore alleging breach of contract; case pending at March 31, 2026. On May 15, 2026, ahead of authorisation, the court orders settlement at Rs 1.80 crore.

Computation Table

Journal Entry

Dr Litigation Expense (P&L) Rs 1.80 crore

Cr Provision for Litigation Rs 1.80 crore

Disclose judgement applied in significant accounting policies section.

Example 2: Non-adjusting event, proposed dividend

Krishna Steel Industries’ board declares a final dividend of Rs 5 crore on May 18, 2026 relating to FY 2025-26 profits; accounts are authorised June 30, 2026.

Computation Table

Journal Entry

No entry required in FY 2025-26

Disclosure note example:

“The Board has recommended a final dividend of Rs 5 crore for FY 2025-26 subject to shareholder approval at AGM.”

Disclosure Requirements under Ind AS 10

Disclosures under Ind AS 10 are critical for compliance with Schedule III to the Companies Act, 2013. They ensure transparency about significant post-year-end events and the timing of financial statement authorisation. Proper disclosure enables users, including auditors and investors, to assess the impact of subsequent events on the entity’s financial position.

Auditors must verify these disclosures as part of their reporting responsibilities under SA 700.

Common Mistakes & Industry-Specific Considerations

Common errors auditors flag

• Recognising dividends declared after the reporting period as a liability at year-end (this was AS 4 treatment; Ind AS 10 prohibits).
• Treating a customer bankruptcy filed after year-end as a non-adjusting event (typically adjusting if conditions existed at year-end).
• Failing to disclose date of authorisation for issue (mandatory under Para 17).
• Adjusting financial statements for events that clearly relate to new conditions (e.g., natural disasters after year-end).
• Inadequate disclosure of financial effect of material non-adjusting events.
• Missing the going concern assessment when events after reporting period materially deteriorate the entity's position.

Industry application notes

Listed companies must coordinate Ind AS 10 disclosures with Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR). Material post-year-end events disclosed to stock exchanges often require parallel disclosure in annual accounts.

In real estate, contracts signed after year-end are usually non-adjusting unless they provide evidence about pricing or impairment at year-end. Sales post-year-end may inform net realisable value (NRV) assessment for unsold inventory.

Banks and NBFCs treat loan defaults occurring after year-end as adjusting if they provide evidence about customer condition at balance sheet date. The expected credit loss (ECL) model under Ind AS 109 incorporates such subsequent evidence in measuring credit risk.

Ind AS 10 vs AS 4 vs IFRS: Key Differences

The table below summarises major differences between Ind AS 10, AS 4, and IAS/IFRS requirements:

India’s approach under Ind AS aligns closely with IFRS except on proposed dividend recognition. Under legacy AS 4, companies recognised proposed dividends as liabilities at year-end; this is now prohibited under both Ind AS 10 and IFRS. Contingencies are covered by Ind AS 37 rather than within Ind AS 10.

Latest Amendments to Ind AS 10 (FY 2026-27)

No amendments have been notified to Ind AS 10 for FY 2026-27 as of 2026-05-02. The standard continues to apply in its existing form.

Related Standards You Should Know

• [Ind AS 1](/ind-as-1-presentation-of-financial-statements/), Going concern assumption disclosed under Ind AS 1; Ind AS 10 events affect that assessment.
• [Ind AS 37](/ind-as-37-provisions-contingencies/), Contingent liabilities and provisions affected by post-reporting evidence.
• [Ind AS 36](/ind-as-36-impairment-of-assets/), Impairment indicators identified after reporting date may be adjusting events.
• [AS 4](/as-4-contingencies-events-after-bs/), Equivalent standard for non-Ind AS companies; differs on proposed dividend treatment.

Need Help with Ind AS 10 Compliance?

Patron Accounting LLP supports CFOs, finance teams, and statutory auditors in achieving full compliance with Ind AS 10 Events after the Reporting Period. Our team applies deep technical expertise to ensure your disclosures align with Schedule III, SEBI LODR, and audit requirements.

Our services include:

• Statutory Audit
• Ind AS Advisory
• Financial Reporting & Schedule III
• Disclosure Review

Schedule a 30-minute consultation with our Ind AS team, Pune · Mumbai · Delhi · Gurugram.

About This Article

Reviewed by CA & CS Team · Patron Accounting LLP

Technical reviewer: CA Sundram Gupta, FCA

Last reviewed: 2026-05-02

Sources: ICAI Compendium of Accounting Standards · MCA Notification (Companies (Indian Accounting Standards) Rules, 2015, dated 16 February 2015) · IFRS Foundation