57   ASC 855 SUBSEQUENT EVENTS

Perspective and Issues

Subtopic

Scope and Scope Exceptions

Overview

Definitions of Terms

Concepts, Rules, and Examples

Types of Subsequent Events

Examples of Subsequent Events

PERSPECTIVE AND ISSUES

Subtopic

ASC 855, Subsequent Events, consists of one Subtopic:

  • ASC 855-10, Overall, which provides guidance for events or transactions occurring after the balance sheet date.

Scope and Scope Exceptions

ASC 855 applies to all entities and all transactions except for those covered in other Codification Topics.

Overview

ASC 855 describes the circumstances under which an entity should recognize events or transactions in its financial statements that occur subsequent to the balance sheet date, but before the financial statements are available to be issued. This can have a potentially significant impact on loss contingencies.

DEFINITIONS OF TERMS

Financial Statements Are Available to Be Issued. Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders. The process involved in creating and distributing the financial statements will vary depending on an entity's management and corporate governance structure as well as statutory and regulatory requirements.

Financial Statements Are Issued. Financial statements are considered issued when they are widely ...

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