ASPE 3820 - Subsequent Events

Question 1

Subsequent Events (ASPE)

Answer 1

• In general, there are two types of subsequent events:
  o those that provide further evidence of conditions that existed at the financial statement date; and
  o those that are indicative of conditions that arose subsequent to the financial statement date.
• Financial statements shall be adjusted when events occurring between the date of the financial statements and the date of their completion provide additional evidence relating to conditions that existed at the date of the financial statements.
• Disclosure shall be made of those events occurring between the date of the financial statements and the date of their completion that do not relate to conditions that existed at the date of the financial statements but:
  o cause significant changes to assets or liabilities in the subsequent period; or
  o will, or may, have a significant effect on the future operations.

Reference: ASPE 3820.04, .07, .10