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Subsequent events

FAR Chapter 25 · Area III · Blueprint III.G

The books close on the balance sheet date, but the statements are not issued for weeks or months. Things happen in between. Some tell you more about what was already true at year end. Others are new. The Blueprint asks you to identify a subsequent event, to calculate its effect, and to say whether it needs an adjustment or a disclosure. The whole chapter rests on one question: did the condition exist at the balance sheet date?

In this chapter

  1. The subsequent events period
  2. Recognized events: adjust
  3. Nonrecognized events: disclose
  4. The test in practice: same event, different answers
  5. Special cases
  6. Calculating the effect on the statements
  7. A routine for every question

This chapter has 7 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

Chapter 24: Lessee accounting