Financial Reporting Standard 110 Events after the Balance Sheet Date (FRS 110) replaces FRS 110₂₀₀₄ Events After the Balance Sheet Date and should be applied for annual periods beginning on or after 1 January 2006. Earlier application is encouraged.

The International Accounting Standards Board developed the revised IAS 10 as part of its project on Improvements to International Accounting Standards. The project was undertaken in the light of queries and criticisms raised in relation to the Standards by securities regulators, professional accountants and other interested parties. The objectives of the project were to reduce or eliminate alternatives, redundancies and conflicts within the Standards, to deal with some convergence issues and to make other improvements.

For IAS 10 the IASB's main objective was a limited clarification of the accounting for dividends declared after the balance sheet date. The IASB did not reconsider the fundamental approach to the accounting for events after the balance sheet date contained in IAS 10.

The main change from FRS 110₂₀₀₄ was a limited clarification of paragraphs 12 and 13 (paragraphs 11 and 12 of FRS 110₂₀₀₄). As revised, those paragraphs state that if an entity declares dividends after the balance sheet date, the entity shall not recognise those dividends as a liability at the balance sheet date.

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