Section 3: 25–35%3G
Subsequent Events
Subsequent events occur after the balance sheet date but before the statements are issued (or available to be issued). The critical judgment is: does the event tell us something about conditions that ALREADY EXISTED at year-end (adjust) or something NEW that arose after year-end (disclose only)?
What AICPA Wants You to Know
- 1Define the subsequent event evaluation period
- 2Distinguish Type 1 (recognized) from Type 2 (non-recognized) subsequent events
- 3Apply the correct accounting treatment to each type
- 4Identify the required disclosure for subsequent events, including the evaluation date
- 5Recognize the difference between SEC registrants and non-public entities for issuance dates