# ASC 855-10-55: Subsequent Events — Overall — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/855/10/#55-implementation-guidance-and-illustrations) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T02:04:44.592Z to 2026-09-10T02:04:44.592Z Record version: sha256:a15596fe6882e833fefc1cd0d263fe7e2e2c172fc49fd3e766c2fd7f863485ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 855-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/855/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [855-10-55-1](https://asc.understandingaccounting.org/asc/855/10/#855-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:44.592Z to 2026-09-10T02:04:44.592Z Record version: sha256:13c8296a8147e2f50da16e471f25c0ceefda1da55e862649524145d70d957e83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of recognized [subsequent events](https://asc.understandingaccounting.org/glossary/s/#subsequent-events "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).") addressed in paragraph [855-10-25-1](https://asc.understandingaccounting.org/asc/855/10/#855-10-25-1): 1. a 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 [financial statements are issued](https://asc.understandingaccounting.org/glossary/f/#financial-statements-are-issued "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.)") or are [available to be issued](https://asc.understandingaccounting.org/glossary/f/#financial-statements-are-available-to-be-issued "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."), 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. 2. b 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. ##### [855-10-55-2](https://asc.understandingaccounting.org/asc/855/10/#855-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:04:44.592Z to 2026-09-10T02:04:44.592Z Record version: sha256:76b345ae9cda5b1a7201907ee3cde5b43abf82fe8810cd368b24cf98907617cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are examples of nonrecognized subsequent events addressed in paragraph [855-10-25-3](https://asc.understandingaccounting.org/asc/855/10/#855-10-25-3): 1. a 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 2. b A business combination that occurs after the balance sheet date but before financial statements are issued or are available to be issued (Topic 805 requires specific disclosures in such cases.) 3. c 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 4. d 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 5. e 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 6. f 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 7. g 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.