Читать книгу Auditing Employee Benefit Plans - Josie Hammond - Страница 74

FASB ASC 855, Subsequent Events, established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. There are two types of subsequent events to be evaluated under this Statement: (a) recognized subsequent events and (b) nonrecognized subsequent events.

An entity must recognize in the financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. An entity must not recognize subsequent events that provide evidence about conditions that did not exist at the date of the balance sheet but that arose after the balance sheet date but before financial statements are issued or are available to be issued. Some nonrecognized subsequent events may be of such a nature that they must be disclosed to keep the financial statements from being misleading. For such events, an entity must disclose the nature of the event and an estimate of its financial effect or a statement that such an estimate cannot be made.

Financial statements are considered issued when they are widely distributed to shareholders and other financial statement users for “general use and reliance” in a form and format that complies with generally accepted accounting principles. Further, financial statements are considered available to be issued when they are complete, which means that they are in a form and format that complies with generally accepted accounting principles, and all approvals necessary for issuance have been obtained.

Entities [except SEC filers and conduit debt obligors (CDOs)] should evaluate subsequent events through the date that the financial statements are available to be issued. SEC filers and CDOs should evaluate subsequent events through the date the financial statements are issued. Entities other than SEC filers should disclose both the date through which subsequent events have been evaluated and whether that date is the “issued” date or “available to be issued” date.