Subsequent Events and Post-Balance-Sheet Reporting

This chapter covers events that occur after period end but before issuance. The central issue is whether the later event provides evidence about a preexisting condition or instead creates only a disclosure issue for the already completed reporting period.

In This Chapter

• Recognized and Nonrecognized Subsequent Events explains the basic timing distinction.
• Subsequent Event Disclosure Periods and Reissuance Considerations addresses how long the evaluation window extends.
• Subsequent Event Effects on Financial Statements and Notes covers how the event changes reporting.

How to Use This Chapter

• Read this chapter near the end of the transaction section because it depends on timing judgment.
• Focus on whether the event changes prior-period measurement or only requires disclosure.
• Return here whenever a FAR miss involves period cutoff or post-balance-sheet-event treatment.

In this section

• Recognized and Nonrecognized Subsequent Events
  FAR distinction between subsequent events that adjust the statements and those that require only disclosure.
• Subsequent Event Disclosure Periods and Reissuance Considerations
  FAR coverage of subsequent event evaluation windows, issuance dates, availability for issuance, and reissuance considerations.
• Subsequent Event Effects on Financial Statements and Notes
  FAR treatment for deciding whether a subsequent event changes statement amounts, note disclosure, or both.