Wiley GAAP: Financial Statement Disclosure Manual

62ASC 855 SUBSEQUENT EVENTS

1. Authoritative Literature
   1. Subtopic
   2. Scope and Scope Exceptions
   3. Types of Subsequent Events
2. Practice Alert
3. Presentation and Disclosure Requirements
   1. Presentation
      1. Nonrecognized Subsequent Events
   2. Disclosures
      1. Date Through Which Subsequent Events Have Been Evaluated
      2. Nonrecognized Subsequent Events
      3. Revised Financial Statements
4. Presentation and Disclosure Examples
   1. Example 62.1: Subsequent Events, Including Events Related to COVID‐19
   2. Example 62.2: Subsequent Events—Sale of OEM Business
   3. Example 62.3: Subsequent Event—Effect of COVID‐19
   4. Example 62.4: Subsequent Event—Stockholder Litigation

AUTHORITATIVE LITERATURE

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.

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.

Types of Subsequent Events

The statement of financial position is dated as of the last day of the fiscal period, but a period of time usually elapses before the financial statements are issued. During this period, significant ...