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Section 2800: Subsequent Events
[U.S. GAAP Codification Topic]
855 Subsequent events
855-10 Overall
[U.S. GAAP before the Codification]
SFAS 165, May 2009, Subsequent events
AICPA, Codification of Statements on Auditing Standards, AU Section 850, Subsequent Events
1. Subsequent Events
Events occurred after (a), before (b)
(a) balance sheet date
(b) date of financial statements are issued: public entities
--> date of financial statements become available to be issued: nonpublic entities
2. Financial statements are issued
--> widely distributed for general use
3. Available to be issued
--> all necessary approvals were obtained to be issued
4. Two types of subsequent events
Type 1: recognized subsequent events
Type 2: nonrecognized subsequent events
5. Recognized subsequent events
--> provide evidence about conditions existed at the balance sheet date
6. Nonrecognized subsequent events
--> provide evidence about conditions that did not exist at the balance sheet date
7. Recognition
(1) The effects of recognized subsequent events
--> recognized in the financial statements
(2) The effects of nonrecognized subsequent events
--> not recognized in the financial statements
8. Disclosures
(1) Two dates are disclosed
date 1: up to this date, subsequent events have been evaluated
date 2: on this date, financial statements are issued or available to be issued
(2) Nature and the extent of its financial effects are disclosed
for the following events:
--> nonrecognized subsequent events
--> that should be disclosed to avoid misleading information
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