{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/855/10/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"855","topic_title":"Subsequent Events","subtopic":"855-10","subtopic_title":"Overall","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"855-10-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EEF44CF6-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following are examples of recognized <a href=\"/glossary/s/#subsequent-events\" class=\"term\" title=\"Events or transactions that occur after the balance sheet date but before financial statements are issued or are available to be issued. There are two types of subsequent events: The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements (that is, recognized subsequent events). The second type consists of events that provide evidence about conditions that did not exist at the date of the balance sheet but arose subsequent to that date (that is, nonrecognized subsequent events).\"><span>subsequent events</span></a> addressed in paragraph <a href=\"/asc/855/10/#855-10-25-1\" class=\"xref\">855-10-25-1</a>:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF44DDC-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the events that gave rise to litigation had taken place before the balance sheet date and that litigation is settled after the balance sheet date but before the <a href=\"/glossary/f/#financial-statements-are-issued\" class=\"term\" title=\"Financial statements are considered issued when they are widely distributed to shareholders and other financial statement users for general use and reliance in a form and format that complies with GAAP. (U.S. Securities and Exchange Commission [SEC] registrants also are required to consider the guidance in paragraph 855-10-S99-2.)\"><span>financial statements are issued</span></a> or are <a href=\"/glossary/f/#financial-statements-are-available-to-be-issued\" class=\"term\" title=\"Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders. The process involved in creating and distributing the financial statements will vary depending on an entity's management and corporate governance structure as well as statutory and regulatory requirements.\"><span>available to be issued</span></a>, for an amount different from the liability recorded in the accounts, then the settlement amount should be considered in estimating the amount of liability recognized in the financial statements at the balance sheet date. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF44EBF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Subsequent events affecting the realization of assets, such as inventories, or the settlement of estimated liabilities, should be recognized in the financial statements when those events represent the culmination of conditions that existed over a relatively long period of time. </span></span></div></li></ol></div></div>","snippet":"The following are examples of recognized subsequent events addressed in paragraph 855-10-25-1:\n(a) If the events that gave rise to litigation had taken place before the balance sheet date and that litigation is settled a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13c8296a8147e2f50da16e471f25c0ceefda1da55e862649524145d70d957e83","downloaded_from":"2026-09-10T02:04:44.592Z","last_downloaded_at":"2026-09-10T02:04:44.592Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483373","source_sha256":"969c462d4fe6c6c7044802325e8d647e2a9a9f95e79bc0f527bb29ed14241591"}},{"citation":"855-10-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_EEF456C9-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following are examples of nonrecognized subsequent events addressed in paragraph <a href=\"/asc/855/10/#855-10-25-3\" class=\"xref\">855-10-25-3</a>:</span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF4579F-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Sale of a bond or capital stock issued after the balance sheet date but before financial statements are issued or are available to be issued</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF4586B-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A business combination that occurs after the balance sheet date but before financial statements are issued or are available to be issued (Topic <a altsource=\"GUID-2E207482-2F2C-41D3-ADA4-A53A3509B10F.ditamap\" class=\"ditamap\">805</a> requires specific disclosures in such cases.)</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF45940-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Settlement of litigation when the event giving rise to the claim took place after the balance sheet date but before financial statements are issued or are available to be issued</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF45A3D-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Loss of plant or inventories as a result of fire or natural disaster that occurred after the balance sheet date but before financial statements are issued or are available to be issued </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">e</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF45AFE-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Changes in estimated credit losses on receivables arising after the balance sheet date but before financial statements are issued or are available to be issued</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">f</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF45BBF-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Changes in the fair value of assets or liabilities (financial or nonfinancial) or foreign exchange rates after the balance sheet date but before financial statements are issued or are available to be issued</span></span></div></li><li class=\"li-norm\"><span class=\"linum\">g</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_EEF45CB4-6E92-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Entering into significant commitments or contingent liabilities, for example, by issuing significant guarantees after the balance sheet date but before financial statements are issued or are available to be issued.</span></span></div></li></ol></div></div>","snippet":"The following are examples of nonrecognized subsequent events addressed in paragraph 855-10-25-3:\n(a) Sale of a bond or capital stock issued after the balance sheet date but before financial statements are issued or are …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:76b345ae9cda5b1a7201907ee3cde5b43abf82fe8810cd368b24cf98907617cb","downloaded_from":"2026-09-10T02:04:44.592Z","last_downloaded_at":"2026-09-10T02:04:44.592Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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