As you navigate the complexities of preparing, compiling, reviewing, and auditing financial statements, it’s crucial to address an often-overlooked aspect: subsequent events disclosures.
Per FASB Accounting Standards Codification (ASC) 855, subsequent events occur after the balance sheet date but before the financial statements are issued or available to be issued. Financial statement disclosures related to these events provide essential context, ensuring stakeholders are fully informed.
The Center for Plain English Accounting (CPEA) underscores the importance of these disclosures for a