F2 M5 Flashcards
Subsequent Events
what is a recognized or type 1 subsequent event?
where it occurred before the balance sheet date and F/S date
-requires an accrual and disclosure
what is a nonrecognized or type 2 subsequent event?
where it occurred after the balance sheet date but before the F/S date
-requires a note disclosure
what is a deductible clause and how is the loss determined?
a deductible clause indicate how much an insurance company is able to cover. If the clause indicates a deductible of $250,000 as an example, it means all but $250,000 is covered by the insurance company and would be accounted for as the loss
when are F/S considered to be available to be issued?
1) F/S are in a form and format that comply with GAAP
2) all approvals necessary for the issuance of the F/S have been received
when are F/S considered to be issued?
1) F/S are in a form and format that comply with GAAP
2) F/S have been widely distributed to F/S users
what is the subsequent evaluation period for an SEC filer?
through the date that its financial statements are issued
what is the subsequent evaluation period for a non-SEC filer?
through the date the financial statements are available to be issued
are entities that file through SEC required to disclose the date through which subsequent events have been evaluated?
No, but it is required for non-SEC filers
