Subsequent Events

ASC 855 tells an entity what to do with events that happen after the balance sheet date but before the financial statements are issued (SEC filers and conduit bond obligors) or available to be issued (all other entities). The core distinction is between "recognized subsequent events" — those giving additional evidence about conditions that already existed at the balance sheet date, which must be reflected in the statements (855-10-25-1) — and "nonrecognized subsequent events" arising from conditions that came into existence only after that date, which are not recognized but must be disclosed (nature plus an estimate of financial effect or a statement that none can be made) if needed to keep the statements from being misleading (855-10-25-3; 855-10-50-2). Non-SEC-filers must also disclose the date through which subsequent events were evaluated and the basis for that date (855-10-50-1), and the Topic defers to any other Codification Topic that addresses the same post-balance-sheet event (855-10-15-4). The industry subtopic ASC 855-926 for film entities was entirely superseded by ASU 2012-07, so film entities now apply ASC 926-20 plus general ASC 855-10 principles.

Subtopics

1. 10Overall35 ¶

   ASC 855-10 governs how entities account for and disclose events that occur after the balance sheet date but before the financial statements are issued or available to be issued. Events providing additional evidence about conditions that existed at the balance sheet date are "recognized subsequent events" and must be reflected in the financial statements (855-10-25-1); events reflecting conditions arising only after the balance sheet date are "nonrecognized" and are only disclosed if needed to keep the statements from being misleading (855-10-25-3; 855-10-50-2). It applies to all entities but yields to any other Codification Topic that addresses the same post-balance-sheet event (855-10-15-4).

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2. 926Entertainment—Films4 ¶

   ASC 855-926 was the film-industry-specific subsection of the subsequent events guidance, which previously required film entities to consider post-balance-sheet information (such as actual results after the reporting date) in estimating ultimate revenue and testing film costs for impairment. Every substantive paragraph (855-926-05-1, 15-1, and 35-1) was superseded by ASU 2012-07, so the subtopic now contains no operative guidance. Film cost impairment and ultimate revenue estimation are addressed instead in ASC 926-20, and general subsequent events guidance remains in ASC 855-10.

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