FAR 2 - M2 Subsequent Events

Question 1

What are subsequent events

Answer 1

TRansaction that occurs after the BS date but before FS are issued or are available to be issued

Question 2

How are subsequent events evaluated by SEC/ non SEC filer for purposes of having to make adjustments or footnotes to YE FS?

Answer 2

SEC filers evaluate subsequent events through the FS issuance date
Non-SEC filer (who files with a SEC filer) should evaluate subsequent events through the date the FS are available to be issued

Available to be issued is when:

1. FS are in a form and format that complies with GAAP
2. Approvals for the issuance have been obtained

Question 3

How do SEC /non SEC filers disclose with respect to when its subsequent evaluation period ended?

Answer 3

SEC filers - No disclosure necessary

NON SEC filers - must disclose that its subs event evaluation period ended through the date the FS are available to be issued