IPSAS 14
Active
Events after the Reporting Date
Prescribes when entities adjust for events after the reporting date, what to disclose about the authorization-for-issue date, and going-concern assessment – with post-reporting-date events that arose AFTER the reporting date disclosed, not adjusted. Effective 1 January 2008 (revised edition that superseded the 2001 original).
Active Standard
IPSAS 14 Events after the Reporting Date is the current, active standard issued by the IPSASB for accounting and disclosure of events after the reporting date. Effective for annual financial statements covering periods beginning on or after 1 January 2008 (the 2008 revised edition superseded the original 2001 edition), with consequential amendments through 2025.
IPSAS 14 is drawn primarily from IAS 10 Events after the Balance Sheet Date, including the IASB's May 2008 Improvements to IFRS, adapted for the public sector with additional commentary on determining the authorization-for-issue date across varied governance structures and going-concern assessment for individual entities.
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Objective, Scope & Definitions (paras. 1–5)
Objective & scope
Prescribes (a) when an entity should ADJUST its financial statements for events after the reporting date, and (b) what to disclose about the authorization date and about those events. Also requires an entity NOT to prepare statements on a going concern basis if post-reporting-date events show that assumption is no longer appropriate.
Applies to an entity preparing accrual-basis financial statements, for accounting and disclosure of events after the reporting date
Paras. 3–4 [Deleted].
The core definition (para. 5)
Events after the reporting date
Favorable and unfavorable events occurring between the reporting date and the date the financial statements are AUTHORIZED FOR ISSUE.
TWO TYPES
Adjusting events – provide evidence of conditions that EXISTED at the reporting date Non-adjusting events – indicative of conditions that AROSE after the reporting date
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Authorizing the Financial Statements for Issue (paras. 6–8)
Two dates that matter
DateMeaning
Reporting dateThe last day of the period the financial statements cover
Date of authorization for issueWhen the individual/body with authority approves the statements for issue – the audit opinion is given on THESE finalized statements
Events after the reporting date are ALL events in between – even if they occur after a surplus/deficit announcement, a controlled entity's own authorization, or publication of other selected information (para. 6).
Who authorizes – and the "second approval" wrinkle
Responsibility varies by jurisdiction. Typically: individual agency statements – the head of the central finance agency (controller/accountant-general). Whole-of-government consolidated statements – jointly the head of the central finance agency and the finance minister.
Some jurisdictions require SUBMISSION to another body afterward (e.g. Parliament or a local council) that may have the power to require CHANGES. If changes are made, the amended statements are a NEW set of financial statements (para. 8, 27) – the authorization date resets.
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Adjusting Events after the Reporting Date (paras. 10–11)
Examples requiring adjustment (para. 11)
Court case SETTLED after the reporting date, confirming a present obligation existed → adjust/recognize a provision under IPSAS 19 (not just disclose a contingent liability) Information received about an asset being IMPAIRED at the reporting date – e.g. a debtor's post-year-end bankruptcy usually confirms credit impairment already existed; inventory sold after year-end evidences its NRV at the reporting date Post-year-end determination of the COST of assets purchased or PROCEEDS of assets sold before the reporting date Post-year-end determination of revenue-sharing amounts under an agreement in place DURING the reporting period Post-year-end determination of performance bonuses, where a present legal/constructive obligation existed at the reporting date Discovery of FRAUD or errors showing the financial statements were incorrect
Government officials announcing intentions between the reporting date and authorization: usually NOT an adjusting event, unless there's sufficient evidence the intention CAN and WILL be fulfilled and it relates to conditions existing at the reporting date (para. 9).
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Non-Adjusting Events after the Reporting Date (paras. 12–13)
The rule & two Handbook examples
An entity shall NOT adjust recognized amounts for non-adjusting events, however material.
A decline in the FAIR VALUE of regularly-revalued property between the reporting date and authorization – reflects LATER circumstances, not the property's condition at the reporting date An entity decides, AFTER the reporting date, to distribute additional community-service-program benefits – expenses aren't adjusted for the current period, even though the decision may warrant disclosure
Material non-adjusting events triggering disclosure (para. 31)
Unusually large fair-value declines unrelated to reporting-date conditions A major public sector combination (IPSAS 40), disposal of a major controlled entity, or outsourcing all/substantially all activities Discontinuing an operation/major program; major asset purchases, held-for-sale classifications (IPSAS 44), disposals, or expropriations Destruction of a major building by fire; major restructuring announced/commenced (IPSAS 19) Legislation forgiving loans; abnormal asset-price or FX-rate swings; tax rate/law changes with a significant effect Significant new commitments/contingent liabilities (e.g. guarantees issued); major litigation arising SOLELY from post-year-end events
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Dividends or Similar Distributions (paras. 14–16)
Not a liability at the reporting date – disclose instead
If dividends/similar distributions are declared AFTER the reporting date, the entity SHALL NOT recognize them as a liability at the reporting date – no obligation existed at that time. They're disclosed in the notes per IPSAS 1 instead.
Public sector context: dividends can arise when a controlling entity consolidates a commercial public sector entity with outside ownership interests, or under a "purchaser-provider" financial management model requiring income distributions to a controlling entity (e.g. central government) (para. 15). Dividends/distributions do NOT include a return of capital.
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Going Concern (paras. 17–24)
Individual entity vs whole-of-government
Going concern is more RELEVANT for individual entities than for a government as a whole. An agency might not be a going concern because government has decided to transfer its activities elsewhere – but that restructuring has NO impact on the government's own going concern status.
SHALL NOT prepare on a going concern basis if, AFTER the reporting date, there's a determined intention to liquidate/cease operating, or no realistic alternative but to do so
What to weigh, and what happens next
Current/expected performance; announced or potential restructuring Likelihood of continued government funding, and potential replacement funding sources
Budget-funded entities: going concern issues generally arise only if government announces it will STOP funding. Self-funding entities: deteriorating post-year-end results/position may itself signal a going-concern problem (paras. 20–21). If the assumption fails, judgment determines the impact on asset/liability CARRYING VALUES, and whether new liabilities arise or debt covenant clauses reclassify debts as current (paras. 22–23).
Disclosure triggers cross-referenced to IPSAS 1 (para. 24)
Statements NOT prepared on a going concern basis → disclose that fact, the basis actually used, and WHY the entity isn't considered a going concern Material uncertainties that MAY cast significant doubt, even where the going-concern conclusion still holds → disclosed regardless, and this can arise from events/conditions AFTER the reporting date
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Restructuring (para. 25)
Disposing of a component ≠ automatic going-concern doubt
A restructuring announced after the reporting date that meets the non-adjusting-event definition is disclosed per this Standard. IPSAS 19 governs recognition of any associated restructuring PROVISION. Merely disposing of a component of the entity does NOT, by itself, call the entity's going-concern status into question – but where the restructuring DOES mean the entity is no longer a going concern, the nature and amount of recognized assets/liabilities may need to change.
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Disclosure Requirements (paras. 26–31)
Authorization date & updating disclosures
Date the financial statements were AUTHORIZED FOR ISSUE, and who gave that authorization If another body can AMEND the statements after issuance, disclose that fact
If new information about REPORTING-DATE conditions arrives before authorization, existing disclosures are UPDATED in light of it – even if amounts recognized don't change. Example: new evidence about a contingent liability that existed at the reporting date updates that disclosure regardless of whether a provision is now recognized (paras. 28–29).
Non-adjusting event disclosure (para. 30)
The NATURE of each material category of non-adjusting event An ESTIMATE of its financial effect, OR a statement that no estimate can be made
Materiality is assessed against whether NON-disclosure could influence users' economic decisions – see §4 for the Handbook's own list of triggering examples.
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Effective Date & Amendment Timeline (paras. 32–34)
Amendment history at a glance
Base Standard: periods beginning on/after 1 January 2008. Supersedes IPSAS 14 (2001) (para. 34, "Withdrawal"). Appendix – Amendments to Other IPSAS – is [Deleted].
EffectiveChange
1 Jan 2011Para. 16 – Improvements to IPSAS (Jan 2010)
1 Jan 2017Para. 33 (IPSAS 33); para. 31 (Improvements to IPSAS 2015)
1 Jan 2018Paras. 3, 4 deleted; paras. 15, 21 amended – The Applicability of IPSAS (Apr 2016)
1 Jan 2019Para. 31 – IPSAS 40, Public Sector Combinations
1 Jan 2023Para. 11 – IPSAS 41, Financial Instruments
1 Jan 2025Paras. 16, 31 – IPSAS 44, Non-current Assets Held for Sale and Discontinued Operations
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Relationship to IAS/IFRS – Comparison with IAS 10
Comparison – IPSAS 14 vs IAS 10
IPSAS 14 is drawn primarily from IAS 10 (revised 2003), Events after the Balance Sheet Date, including the IASB's May 2008 Improvements to IFRS.
TopicDifference
Going concern judgmentIPSAS 14 notes judgment is needed for the CARRYING VALUE impact when going concern fails (para. 22) – no IAS 10 equivalent
Authorization-for-issue commentaryIPSAS 14 has additional commentary (paras. 6–8) on determining that date across varied public sector governance structures
Terminology"Net assets/equity," "reporting date" (IPSAS 14) vs "equity," "balance sheet date" (IAS 10)
"Reporting date" definitionIPSAS 14 defines it explicitly; IAS 10 has no equivalent definition of "balance sheet date"
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Statement / Process Mapping
Adjusting vs non-adjusting – decision map
- Did the event occur between the reporting date and the authorization date? If no → not an "event after the reporting date" at all
- Does it provide evidence of a condition that EXISTED at the reporting date? → ADJUSTING – update recognized amounts, or recognize items not previously recognized (§3)
- Is it indicative of a condition that AROSE afterward? → NON-ADJUSTING – do not change recognized amounts (§4)
- Is a non-adjusting event MATERIAL? → disclose its nature and financial effect (or state none can be estimated) (§8)
- Does the event affect whether the entity remains a GOING CONCERN? → reassess the basis of preparation entirely, regardless of adjusting/non-adjusting classification (§6)
- Were dividends/distributions DECLARED after the reporting date? → never a liability at the reporting date; disclose only (§5)
Concept-to-statement mapping table
IPSAS 14 conceptStatement(s)Notes
Adjusting eventSOFP SOFPerfRecognized amounts updated directly
Non-adjusting event (material)NotesNature + financial effect estimate disclosed only
Going concern failure post-year-endSOFP NotesBasis of preparation changes entirely, per IPSAS 1
Dividends declared after the reporting dateNotesNever a SOFP liability at the reporting date
Authorization date & authorityNotesMandatory per para. 26
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Related Standards – Cross-Reference Map
How IPSAS 14 connects across the IPSAS body of literature
StandardNature of the connection
IPSAS 1Going concern and material uncertainty disclosure requirements that IPSAS 14 events can trigger (§6, §8)
IPSAS 19Provision recognition/adjustment for adjusting events (e.g. settled litigation); restructuring provisions (§3, §7)
IPSAS 40Major public sector combinations after the reporting date – specific disclosure requirements layered on top (§4)
IPSAS 41Amended para. 11's impairment example wording (financial asset credit-impairment terminology) (§3)
IPSAS 44Held-for-sale classification and discontinued operations as a non-adjusting event trigger (§4)
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Quick-Reference Glossary
Adjusting events
Events after the reporting date providing evidence of conditions that existed at the reporting date.
Non-adjusting events
Events after the reporting date indicative of conditions that arose after the reporting date.
Reporting date
The last day of the reporting period to which the financial statements relate.
Date of authorization for issue
The date the financial statements receive approval from the individual/body with authority to finalize them.
Going concern
The assumption that an entity will continue operations for the foreseeable future – reassessed for events after the reporting date.
Dividends or similar distributions
Distributions to owners, excluding a return of capital.
Financial statement key
SOFP Statement of financial position
SOFPerf Statement of financial performance
Notes Notes to the financial statements