F2M5 Subsequent Events Flashcards
(2 cards)
1
Q
What are the key probability terms used in accounting for recognized subsequent events and their implication?
A
1) Probable: most likely than not to occur (>50% probability). Accrue for recognized S/E;
2) Reasonably Possible: Disclose for recognized S/E
3) Remote: Not recognition or disclosure
2
Q
What’s the accounting principle considered to disclose non-recognized Subsequent Events
A
Materiality; probability is not a factor