Set 7 FR 33 Events after reporting period

Question 1

Define subsequent events

Answer 1

Events favourable or unfavourable that happen between year-end and the date of authorization of the financial statements

Question 2

First step - materiality

Answer 2

Assess if it is material. If not, no further work required.

Question 3

Define adjusting and non-adjusting event

Answer 3

Adj - further evidence about events that existed at year-end

Non - adj - evidence about events that did not exist at year-end

Question 4

Going concern if entity plans to cease trading or liquidate

Answer 4

B/S restated at liquidation values

Question 5

How are these events recorded?

Answer 5

adj - recorded in FS

non-adj - disclosed.

Question 6

ASPE vs IFRS

Answer 6

ASPE - sub event period is the COMPLETION date of FS.

IFRS - sub event period is the AUTHORIZATION date of FS.