Chapter 10 Section 9: Subsequent Events Flashcards
1
Q
What are recognized subsequent events and how do you handle them?
A
The conditions existed at the balance sheet date
Record JE and disclose
2
Q
What are unrecognized subsequent events and how do you handle them?
A
The conditions did not exist at the balance sheet date
Disclose
3
Q
What if you reissue your financial statements?
A
Don’t recognize subsequent events like they happened the first time through
