FAR · Select transactions · 129 practice questions
Subsequent events: recognize vs disclose, dates, and amounts under ASC 855
If you first lock in the cutoff date, then ask whether the later fact proves a condition existed at year‑end, every subsequent‑event question falls into place.
Mixed drill
Questions from every rule below, shuffled. You get the explanation after each one, and at the end, the rules to review.
The rules, one page each
- Recognized vs nonrecognized subsequent events (ASC 855)Contrasting cases
Under ASC 855, recognize events that provide additional evidence about conditions that existed at the balance sheet date; disclose but do not adjust for events that are new conditions after year-end.
- Private vs public cutoff: available-to-be-issued vs issued, board approval, and what to discloseTimeline
Non‑SEC entities evaluate subsequent events through the date the financial statements are available to be issued; SEC filers evaluate through the date issued. Events after that date are not subsequent events. Non‑SEC entities disclose the evaluation date in the notes.
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