F2 M2 - Subsequent events

Question 1

What is a subsequent event?

Answer 1

an event or transaction that occurs after the B/S date but before the F/S are issued or are available to be issued.

Question 2

What is the evaluation period for subsequent events for a “filer” and do you need a disclosure? ( files with the SEC)

Answer 2

1. for a filer ( filing with the SEC) sub events are evaluated through the date of the financial statements ARE ISSUED
2. Widely distributed to FS users.
3. No disclosure

Question 3

What is the evaluation period for subsequent events for a “non filer” and do you need a disclosure?

Answer 3

1, The subsequent event period for all other entities (period that the statements are “available to be issued”.)
2.FS are in GAAP format and
all approvals for issuance have been obtained.
3. disclose Sub event period

Question 4

If something happened as of balance sheet date does it needs to be disclosed or accrued

Answer 4

both, this is a recognized sub event