| Back |
Disclosures Concerning Subsequent Events under OCBOA |
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 855, Subsequent Events, sets forth general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. FASB ASC 855 also requires disclosure of the date through which an entity has evaluated subsequent events and the basis for that date (i.e., whether that date represents the date on which the financial statements were issued or were available to be issued).
Recently, the American Institute of Certified Public Accountants issued Technical Information Service (TIS) 1500.07, Disclosure Concerning Subsequent Events in Financial Statements Prepared on an Other Comprehensive Basis of Accounting, to clarify that full-disclosure financial statements prepared on an other comprehensive basis of accounting (OCBOA) should contain the disclosures set forth in FASB ASC 855. Therefore, the date through which an entity has evaluated subsequent events and the basis for that date should be disclosed. Furthermore, some nonrecognized subsequent events are of such a nature that they must be disclosed to keep the financial statements prepared on an OCBOA from being misleading. Such events should be disclosed following the guidance in FASB ASC 855.
TIS 1500.07 is available in full at http://www.aicpa.org/download/acctstd/FINAL_TIS1500-07_DisclosureofSubsequentEvents.pdf.
Source: McGladrey & Pullen |