IAS 10 vs ASC 855: subsequent events

What happens between the year end and the day the accounts are signed can change the numbers, the notes and sometimes the basis of preparation. IAS 10 and ASC 855 agree on almost every event, but not on debt that is refinanced or waived in that window, which can turn a healthy balance sheet into one with a working capital deficit. This guide compares the two side by side, works through a covenant waiver under both, and covers the cut-off date, going concern, reissued statements and disclosure.

By Awais Jameel, Chartered Accountant. Reviewed by Muhammad Bilal, Chartered Accountant. Updated . 7 minute read.

Short answer

IAS 10 vs ASC 855 share the same split of events after the balance sheet date. Events that give more evidence about conditions at the reporting date, such as a customer's bankruptcy that shows a receivable was impaired, are adjusting events under IAS 10 and recognized subsequent events under ASC 855. Events that reflect new conditions, such as a fire or an acquisition after year end, are non-adjusting or nonrecognized and are disclosed if material. Dividends declared after year end are not a liability under either. The differences are at the edges. IAS 10 runs to the date the statements are authorized for issue; ASC 855 runs to the date they are issued for SEC filers and available to be issued for others. Debt classification is the biggest practical difference: under US GAAP, a covenant waiver or a long-term refinancing obtained after year end but before the statements are issued can make debt noncurrent, while under IFRS the debt stays current. Going concern is assessed for at least 12 months from the reporting date under IFRS and for one year from the issue date under US GAAP. In this guide's example, a CU 5,000 thousand loan waived in January is a current liability under IFRS and noncurrent under US GAAP.

At a glance

Event types
Same split
Cut-off date
Authorized vs issued
Covenant waivers
Long-term in US
Refinancing
Long-term in US
Going concern
Different start dates
Dividends
Not a liability, both
IAS 10 vs ASC 855: subsequent eventsEvent types: Same split; Cut-off date: Authorized vs issued; Covenant waivers: Long-term in US; Refinancing: Long-term in US; Going concern: Different start dates; Dividends: Not a liability, both.KEY FACTS AT A GLANCEIAS 10 vs ASC 855: subsequent eventsEvent typesSame splitCut-off dateAuthorized vs issuedCovenant waiversLong-term in USRefinancingLong-term in USGoing concernDifferent start datesDividendsNot a liability, bothTax BakersIAS 10 vs ASC 855: subsequent eventsEvent types: Same split; Cut-off date: Authorized vs issued; Covenant waivers: Long-term in US; Refinancing: Long-term in US; Going concern: Different start dates; Dividends: Not a liability, both.KEY FACTS AT A GLANCEIAS 10 vs ASC 855: subsequenteventsEvent typesSame splitCut-off dateAuthorized vs issuedCovenant waiversLong-term in USRefinancingLong-term in USGoing concernDifferent start datesDividendsNot a liability, bothTax Bakers
Key facts at a glance, as set out in this guide.

What do IAS 10 and ASC 855 have in common?

Both distinguish events that provide evidence of conditions that existed at the balance sheet date, which are reflected in the amounts, from events that arise after it, which are disclosed with an estimate of their financial effect when material. The examples match: settlement of a lawsuit that existed at year end or a customer's bankruptcy are adjusting or recognized; a fire, a business combination, a share issue or a fall in market prices after year end are non-adjusting or nonrecognized. Both treat dividends declared after year end as an event for the next period, and both restate share and per-share amounts for a share split after year end. See IAS 10 events after the reporting period and ASC 855 subsequent events.

IAS 10 vs ASC 855: what are the differences?

IAS 10 vs ASC 855 at a glanceIAS 10 vs ASC 855 at a glanceTOPICIFRSUS GAAPWaiver after year end: noncurrentNot allowedAllowedRefinancing after year end countsNot allowedAllowedGoing concern window starts atYear endIssue dateDisclose the evaluation dateRequiredNon-SEC filersDividends declared after year endNot a liabilityNot a liability
Same events; different treatment of debt fixed after the year end.
AreaIAS 10 and IFRSASC 855 and US GAAP
Events are evaluated up toThe date the statements are authorized for issueThe date they are issued, for SEC filers; the date they are available to be issued, for others
Disclosure of that dateRequired, with who authorized the statements and whether owners can amend themRequired for entities other than SEC filers, with whether it is the issued or available-to-be-issued date
Covenant breached at year end, waived afterwardsCurrent liability; the waiver is a non-adjusting eventNoncurrent if the lender waives the right to demand repayment for more than a year and a new breach within a year is not probable
Short-term debt refinanced after year endCurrent liability, unless the company had the right to roll it over at year endNoncurrent if refinanced on a long-term basis, or a qualifying financing agreement is in place, before the statements are issued
Going concern assessment periodAt least 12 months from the end of the reporting periodOne year from the date the statements are issued or available to be issued
A decision after year end to liquidateThe statements are no longer prepared on a going concern basisThe liquidation basis applies only when liquidation is imminent
Reissued financial statementsNo specific guidanceEvents after the original issue date are generally not recognized, and the date through which events were evaluated is disclosed

An example: a covenant waiver in January

At December 31, 2026 a company breaches a covenant on a CU 5,000 thousand bank loan that is otherwise repayable in 2029, which makes it repayable on demand. On January 20, 2027 the bank waives the breach and agrees not to demand repayment for 15 months, and the company expects to comply with the covenant from then on. The statements are approved on February 25, 2027. The company has CU 6,000 thousand of current assets and CU 3,000 thousand of other current liabilities. All figures are in CU thousand.

Balance sheet at December 31, 2026IFRSUS GAAP
Loan classified asCurrent: 5,000Noncurrent: 5,000
Total current liabilities8,0003,000
Working capital(2,000)3,000
Current ratio0.752.00
The January waiverDisclosed as a non-adjusting eventReflected in the classification

Under IFRS the company shows a working capital deficit, because at the reporting date it had no right to defer settlement for at least twelve months; had the bank granted the waiver by December 31, the loan would have been noncurrent under both. Companies reporting under IFRS that expect a covenant problem therefore ask for waivers before the year end, not after it. See ASC 470 debt for how US GAAP treats modified and refinanced loans.

How does the going concern window differ?

A company with a December 31, 2026 year end that issues its statements on February 25, 2027 looks at least to December 31, 2027 under IFRS, and to February 25, 2028 under US GAAP. US GAAP also defines when substantial doubt exists, when it is probable the company will be unable to meet its obligations within the year, and what to disclose when management's plans alleviate it. Under IFRS 18, the going concern requirements move from IAS 1 into IAS 8 from 2027, without changing the period.

Where to go next

See IFRS vs US GAAP key differences and IAS 37 vs ASC 450.

Keep going

Our free Excel models work through the examples in these guides, and the comparisons show where IFRS and US GAAP part ways. Every guide names the Chartered Accountant who wrote it and the one who reviewed it.

All IFRS vs US GAAP guides Free Excel models

Questions people ask

What is the difference between IAS 10 and ASC 855?

They classify events the same way; the differences are the cut-off date, which is the authorization date under IFRS and the issue or available-to-be-issued date under US GAAP, and the treatment of debt refinanced or waived after year end.

Can a covenant waiver after year end make a loan noncurrent?

Under US GAAP, yes, if the lender waives its right to demand repayment for more than a year and a new breach is not probable. Under IFRS, no: the loan is current and the waiver is disclosed as a non-adjusting event.

Up to what date are subsequent events evaluated?

Under IFRS, the date the financial statements are authorized for issue. Under US GAAP, the date they are issued for SEC filers, and the date they are available to be issued for other entities.

How long is the going concern assessment period?

At least 12 months from the end of the reporting period under IFRS, and one year from the date the financial statements are issued or available to be issued under US GAAP.

Sources

The standards, updates and other documents this guide draws on.

  1. IFRS Foundation: IAS 10 Events after the Reporting Period
  2. FASB Accounting Standards Codification: Topic 855, Subsequent Events
  3. FASB Accounting Standards Codification: Topic 470, Debt

Rules and fees change. If you are reading this long after October 26, 2026, confirm the figures with the source before you rely on them.

IAS 10IAS 10 events after the reporting periodASC 855ASC 855 subsequent eventsAccounting standardsIFRS vs US GAAP: the key differences in one guide

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This guide is general information. It is not tax or legal advice for your situation.