Subsequent Events, ASC 855

Statement of Financial Accounting Standards No. 165, May 2009
“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

Financial statements are issued
–> widely distributed for general use

Available to be issued
–> all necessary approvals were obtained to be issued

Type 1: recognized subsequent events
Type 2: nonrecognized subsequent events

Recognized subsequent events
–> provide evidence about conditions existed at the balance sheet date
Nonrecognized subsequent events
–> provide evidence about conditions that did not exist at the balance sheet date

The effects of recognized subsequent events
–> recognized in the financial statements
The effects of nonrecognized subsequent events
–> not recognized in the financial statements

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

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