Subsequent Events Flashcards
“Sale of Bond or Capital Stock” after the Balance Sheet Date but before date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Business Combination” after the Balance Sheet Date but before date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Loss of plant due to fire or natural disaster” after the Balance Sheet Date but before the date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Loss of Inventory due to fire or natural disaster” after the Balance Sheet Date but before the date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Settlement of litigation that arose after the Balance Sheet date” after the Balance Sheet Date but before the date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Change in the Fair Value of assets” after the Balance Sheet Date but before the date, Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Change in the Fair Value of Liabilities” after the Balance Sheet Date but before the date, Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Change in the Fair Value of Foreign Exchange rates” after the Balance Sheet Date but before the date, Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Entering into Significant Commitments” after the Balance Sheet Date but before the date, Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Entering into Contingent Liabilities” after the Balance Sheet Date but before the date, Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Loss on receivables resulting from conditions occurring” after the Balance Sheet Date but before the date Financial Statements are ISSUED or Available to be issued.
Happened after the Balance Sheet date and did NOT EXIST at the Balance Sheet date, it is a NON-recognized Event. it should be disclosed if the disclosure is necessary to keep FS from being misleading. Disclose the nature and estimated effect on FS or a statement that no estimate can be made.
“Settlement of Litigation” that existed at the date of Balance Sheet and settled before before the date Financial Statements are ISSUED or Available to be issued.
Record the Journal Entry and Disclose
“Loss on Uncollectible Receivables” that existed at the date of Balance Sheet and settled before before the date Financial Statements are ISSUED or Available to be issued.
Record the Journal Entry and Disclose
What is a subsequent Event Evaluation Period
An entity MUST evaluate subsequent events through the date that the Financial Statements are issued (PUBLIC) or are available to be issued (PRIVATE).
If an entity reissues Financial Statements, should the entity recognize events that occurred between the date the original financial statements were an issue or available to be issued and the date financial statements are reissued?
NO
