SSAP 9: Subsequent Events

Question 1

Define “subsequent events”:

Answer 1

Events that occur subsequent to the balance sheet date, but before the issuance of the statutory financial statements

Question 2

2 categories of subsequent events:

Answer 2

• Type 1; “Recognized Subsequent Events”: provide “additional evidence with respect to conditions that existed at the date of the balance sheet”
• Type 2; “Non-recognized Subsequent Events”: provide “evidence with respect to conditions that did not exist at the date of the balance sheet”

Question 3

Which events should already be reflected in the financial statements:

Answer 3

Type 1

Financial Statements need to be adjusted to reflect the impact of material Type 1 events.

Only need to disclosed nature of adjustment if it will keep the financial statements from being misleading.

Question 4

Disclosures about Type 2 events in the financial statements:

Answer 4

• Nature of the event

- Estimate of its financial impact, or a statement that the estimate can not be made