Financial Events Occurring After the Balance Sheet Date Within the Framework of IAS/TMS 10 Standard and a Suggestion

Abstract

taxable figures, the revealing of the operating performance. The balance sheet, in which the assets and resources of the enterprise are depicted on a certain date, is usually produced on the last day of the year under the name of the end-of-period balance sheet. How to handle and evaluate financial events that occur after the balance sheet date is discussed in the Ias/Tms 10 Standard. In the study, Ias/Tms 10 Standard will be discussed comprehensively and sample applications from companies operating in Borsa Istanbul will be shown to contribute to the intelligibility of the standard.

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“…Events during this period may affect the decisions of users of accounting information on the entity's financial report or statement of financial position. Therefore, there may be a need to reflect on some of these changes, which may have a material impact on the financial statement (Aslan, 2021), and may directly or indirectly affect investor decisions. With the preceding, it may be necessary to use the approval date of the financial statement as a focal point.…”

“…Within the general concept of International Financial Reporting Standards (IFRS), Statements of Accounting Standards (SASs), and Generally Accepted Accounting Principles, an entity is expected to render financial reports based on a concept of periodicity (say, a period of twelve months). According to (Aslan, 2021), financial reporting is the accounting science of preparing and presenting financial reports that dwell on an entity's financial performance. Information reported by companies is valuable to various users or stakeholders (Melville, 2019).…”

“…International accounting standards have gained prominence as a result of globalisation influences and an increase in cross-border trades and other activities, as different stakeholders can review financial information and accounting numbers on an entity in different parts of the world as a result of globalisation impacts and an expansion in cross-line exchanges and different exercises. Several publications, which include Aslan (2021); Nobes (2020) and Melville (2019), have attested to the usage of accounting standards in the preparation of accounting reports leveraged on the concept of periodicity, covering a specified period and taking effect at a given date when the statement or report becomes decisive and authorised for use. Financial statements, also known as accounting reports, are one of the most important statements that IFRS expects to be made every time they cover a given period.…”