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

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What’s the accounting principle considered to disclose non-recognized Subsequent Events

A

Materiality; probability is not a factor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly