Subsequent Events
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

Two types of subsequent events
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

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

Disclosures
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

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