An event, favorable or unfavorable, that takes place after the reporting period, specifically between the end of the period and the date on which financial statements of an entity are authorized for issue, providing evidence of transactions that were made and conditions that arose by the end of that period.

An adjusting event entails adjustment to the amounts recognized in the financial statements to reflect such transactions and conditions. Examples of adjusting events include: 1) determination of the cost of assets acquired or the sale or disposal price of assets sold before the end of the reporting period, 2) obtaining evidence of asset impairment that occurred at the end of the reporting period, and 3) laying hands on errors or manipulation that materially affected the accuracy/ correctness of the financial statements.