Wiley GAAP 2024

62ASC 855 SUBSEQUENT EVENTS

• Perspective and Issues
  • Subtopic
  • Scope and Scope Exceptions
  • Overview
• Definitions of Terms
• Concepts, Rules, and Examples
  • Recognizing Subsequent Events
  • Presentation and Disclosure
  • Sources

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. (ASC 855-10-15-2 and 15-3)

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

Source: ASC 855-20. See Appendix A, Definitions of Terms, for other terms related to this topic: Conduit Debt Securities, Financial Statements Are Available to Be Issued, Financial Statements Are Issued, and (SEC) Filers.

Revised Financial Statements. Financial statements revised only for either of the following conditions:

1. Correction of an error
2. Retrospective application of U.S. GAAP

Subsequent Events. Events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. There are two ...