Subsequent Events

Free CPA FAR (Financial Accounting & Reporting) lesson in Select Transactions. 18 min read, ~2,743 words.

ASC 855 governs subsequent events: things that happen between the balance sheet date and the issuance date. Type I (recognized): condition existed at the balance sheet date. Adjust the financial statements. Type II (nonrecognized): condition arose after the balance sheet date. Disclose only, do not adjust. SEC filers evaluate through...

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