FASB issues statement 165.
GAAP requires disclosure of events or transactions that occurred after the balance sheet date, but before financial statements are issued. These events or transactions provide evidence about conditions that existed at the date of the balance sheet.
This guidance is generally straightforward for public companies that have a universally understood issuance date. For companies, generally non public, which may not widely distribute their financial statements, FAS 165 introduces the concept of “Financial Statements are Available to be Issued”. FASB defines this by stating that, “Financial statements are considered available to be issued when they are complete in form and format that complies with GAAP and that all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders.”
As a result of this clarification, companies that do not widely distribute their statements will not need to continue to evaluate subsequent events for an extended period of time following their completion. The date through which subsequent events have been evaluated must be disclosed.
This statement effective for interim and annual financial statements ending after June 15, 2009.
GAAP requires disclosure of events or transactions that occurred after the balance sheet date, but before financial statements are issued. These events or transactions provide evidence about conditions that existed at the date of the balance sheet.
This guidance is generally straightforward for public companies that have a universally understood issuance date. For companies, generally non public, which may not widely distribute their financial statements, FAS 165 introduces the concept of “Financial Statements are Available to be Issued”. FASB defines this by stating that, “Financial statements are considered available to be issued when they are complete in form and format that complies with GAAP and that all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders.”
As a result of this clarification, companies that do not widely distribute their statements will not need to continue to evaluate subsequent events for an extended period of time following their completion. The date through which subsequent events have been evaluated must be disclosed.
This statement effective for interim and annual financial statements ending after June 15, 2009.
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