Subsequent events

Question 1

What is the subsequent event period?

Answer 1

Between the reporting date and the date when financial statements are authorized (IFRS), or completed (ASPE)

Question 2

1st step is to access the materiality of the event to users of the f/s…

Answer 2

If not material - don’t do anything.

If material - determine if adjusting event or nonadj event

Question 3

Adj event

Answer 3

provide evidence of conditions that existed at y/e

Record for adj.

Question 4

Non-adj event

Answer 4

are indicative of conditions that occured AFTER y/e

do not record, just disclose:

• Nature of the event
• Estimate of the amount or state an estimate can’t be made

Question 5

If learn the company is not a going concern in subsequent period…

Answer 5

company should not prepare its statements on a going concern. should instead restate current reporting periods b/s at liquidation value

Question 6

A company must disclose

Answer 6

• the date the f/s were authorized
• any persons who have the power to amend the f/s after they are issued