In the intricate world of financial reporting, events after the reporting period can significantly alter the narrative of a company’s financial health. Whether it is a fire that reveals pre-existing damage to inventory or a sudden acquisition that reshapes future strategies, the distinction between adjusting and non-adjusting events is pivotal. This article dives into the nuanced guidance provided by IAS 10 and Section 32 of IFRS for SMEs, offering practitioners real-world examples to illuminate the path toward accurate and transparent financial disclosures. Understanding these principles isn’t just about compliance; it is about building trust and accountability in every set of financial statements.

The going concern principle is a cornerstone of financial reporting, shaping how businesses assess their ability to operate over the next 12 months. This article explores the critical guidance from IFRS and the Companies Act 71 of 2008, practical tools like cash flow analysis and stress testing to measure going concern, and actionable steps when a business faces financial uncertainty. Whether it's transitioning to liquidation accounting or engaging stakeholders, understanding these principles ensures transparency, compliance, and proactive decision-making for long-term viability.

Leases play a pivotal role in SME operations, offering asset access with flexible terms. IFRS for SMEs simplifies lease classification and reporting for lessees and lessors. This article provides a clear framework, practical examples, and disclosure requirements to ensure compliance with ease. Stay ahead in financial reporting by familiarising yourself with IFRS for SMEs.