FASB Releases Statement on Subsequent Events

Submitted by Melissa Hoffmann on Thu, 05/28/2009 - 15:48

The Financial Accounting Standards Board (FASB) has issued FASB Statement No. 165, Subsequent Events, which is intended to establish general standards of accounting for -- and disclosure of -- events that occur after the balance sheet date but before financial statements are issued.

It requires the disclosure of the date through which an entity has evaluated subsequent events and the basis for that date.

The FASB's statement outlines:

  •  The period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements;
  • The circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements;
  • The disclosures that an entity should make about events or transactions that occurred after the balance sheet date.

This statement is effective for interim and annual periods ending after June 15, 2009. Check out a summary here and a press release here.

Bookmark/Search this post with:

The New York State Society of Certified Public Accountants (NYSSCPA) encourages you to add a comment to this discussion.  You may not post any unlawful, threatening, defamatory, obscene, pornographic or other material that would violate the law.  Please note that NYSSCPA reviews all comments prior to posting. NYSSCPA may edit comments for clarity or to keep out questionable or off-topic material.  All comments should be relevant to the post and remain respectful of other authors. To view the full “NYSSCPA Blog Terms and Conditions,” click here.