SUBSEQUENT EVENTS

Question 1

Subsequent Event

Answer 1

It is an event or transaction that occurs after the balance sheet date but before the financial statements are issued or are available to be issued.

Question 2

Divided into Two Categories

Answer 2

1. Recognized Subsequent Event (Exist at balance sheet date)
   - Settlement of Litigation
   - Loss on an Uncollectible Receivable
2. Unrecognised Subsequent Event (Does not exist at balance sheet date) must be disclosed

Question 3

Subsequent Event Evaluation Period

Answer 3

FS filed with SEC - evaluate through the date that FS are issued

others - evaluate through the date that FS are available to issue

Question 4

Reissuance of FS

Answer 4

should not recognise events that occurred btw the date the original FS were issued or available and the date that the FS were reissued unless required by GAAP

Question 5

Revised Financial Statements

Answer 5

have been revised to correct an error or to reflect the retrospective application of US GAAP

not SEC filers - disclose in its revised FS the dates thru which subsequent events have been evaluated in both its issued/available to be issued FS and its revised FS.