Events after the reporting period
In one sentenceEvents that occur between the end of the financial period and the date the statements are authorized for issue; some require adjusting the figures and some only require disclosure.
Simply put
The first type is adjusting: it provides evidence of a condition that existed at year end, such as the bankruptcy of a customer whose balance was doubtful, so the figures are adjusted.
The second type is non-adjusting: a new event after year end, such as a warehouse fire in February, so the figures do not change but it is disclosed in the notes if it is significant (under IAS 10).
Example
A contracting business's year ends on 31 December, and the statements are approved in March. In February a customer who has owed it a large amount since October went bankrupt; this is an adjusting event, so it increases the allowance for doubtful debts in the statements for the year just ended.
Don't confuse it with
Contingent liabilitiesA contingent liability is an existing uncertain obligation, while a subsequent event concerns the timing of an event occurring after the end of the period.