What kind of subsequent events require disclosure?
Subsequent Events: When Do I Record and When Do I Disclose?
- 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;
What are the two types of subsequent events?
There are two types of subsequent events:
- Adjusting events. An event that provides additional information about pre-existing conditions that existed on the balance sheet date.
- Non-adjusting events. A subsequent event that provides new information about a condition that did not exist on the balance sheet date.
What is definition of subsequent event what the different between Type 1 and Type 2 subsequent event?
Subsequent events fall into one of two categories, each with its own accounting rules: Type I subsequent events provide evidence about conditions that existed on or before the balance sheet date. Type II subsequent events provide evidence about conditions that did not exist on or before the balance sheet date.
Who is responsible for identifying subsequent events?
the auditor’s
ISA 560, Subsequent Events outlines the auditor’s responsibility in relation to subsequent events. For the purposes of ISA 560, subsequent events are those events that occur between the reporting date and the date of approval of the financial statements and the signing of the auditor’s report.
When to disclose the date of subsequent events?
A company should disclose the date through which there has been an evaluation of subsequent events, as well as either the date when the financial statements were issued or when they were available to be issued.
What do you mean by subsequent events in a financial statement?
In other words, subsequent events are events that happen between the cut-off date and the date in which the company issues its financial statements. Depending on the situation, subsequent events may require disclosure in a company’s financial statements.
When does the tabular disclosure of significant events occur?
Tabular disclosure of significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued.
When do subsequent events may require disclosure IFRS Standards?
Depending on the situation, subsequent events may require disclosure IFRS Standards IFRS standards are International Financial Reporting Standards (IFRS) that consist of a set of accounting rules that determine how transactions and other accounting events are required to be reported in financial statements.
