Post-reporting-period events that relate to conditions arising after the reporting date and therefore do not change the original statement amounts.
Non-adjusting events are events discovered after the reporting date that relate to conditions arising after that date. They do not change the original statement amounts, though material cases may still require disclosure.
They matter because users need to distinguish between:
evidence that changes the understanding of period-end numbers
later developments that are important but belong to a different economic period
If the underlying condition did not exist at the reporting date, the event does not belong inside the measured balances for that period.
Typical examples include:
a major acquisition agreed after period end
a natural disaster arising after the reporting date
new market collapses or financing changes that occur later
These may still need note disclosure if they are material.
Non-adjusting events are disclosed when important.
Adjusting events change the reported balances because they provide evidence about conditions already present at period end.
Post-Balance-Sheet Events: The broader category that includes both types.
Adjusting Events: Events that do require statement adjustment.
Post-Balance-Sheet Review: The review process used to identify and assess these events.