What are the subsequent events?
A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. Depending on the situation, such events may or may not require disclosure in an organization’s financial statements.Click to see full answer. Hereof, what are the two…
A subsequent event is an event that occurs after a reporting period, but before the financial statements for that period have been issued or are available to be issued. Depending on the situation, such events may or may not require disclosure in an organization’s financial statements.Click to see full answer. Hereof, what are the two types of subsequent events?There are generally two types of subsequent events. 1)The first is a recognized event whereas the second is a non-recognized event. Recognized or type 1 subsequent events are typically events that occurred at the financial statement date. But that may have concluded after the year end.Also, what subsequent events require disclosure? Sale of a bond or capital stock issued after the balance sheet date; A business combination that occurs after the balance sheet date; Settlement of litigation when the event giving rise to the claim took place after the balance sheet date; Likewise, how do you find subsequent events? Review existing procedures (if any) laid down by the management to identify these events. Study minutes of the meetings of the Members, Board of the directors and other important executive committees (if any) held after the balance sheet date and enquire about the matters which may be relevant in this regard.What is a non recognized subsequent event?Non-recognized subsequent events do not require adjustments to the financial statements. Such events are those that relate to financial conditions that did not exist on the balance sheet date but arose after the date.
