When would a subsequent event require adjustment or disclosure in the financial statements?
Key statements of financial position sheet items and related disclosures that have been impacted by COVID-19 were as follows: Show Trading assets, trading liabilities and financial investments Derivative
assets and liabilities Held for sale assets and liabilities Loan assets, due from subsidiaries and other assets Property, plant and equipment and right-of-use assets Interest
in associates and joint ventures, investments in subsidiaries and interests in unconsolidated structured entities Intangible assets Debt issued and loan capital Hedge accounting Risk management When should a subsequent event be disclosed?Generally, there are two criteria that are both required for a subsequent event to need disclosure. The event should have a determinable significant effect on the balance sheet at the time of occurrence or on the future operations of the reporting entity.
What kind of subsequent events require disclosure?Examples of events of the second type that require disclosure to the financial statements (but should not result in adjustment) are: Sale of a bond or capital stock issue. Purchase of a business. Settlement of litigation when the event giving rise to the claim took place subsequent to the balance-sheet date.
What are adjusting subsequent event?Adjusting events
An event that provides additional information about pre-existing conditions that existed on the balance sheet date.
Which of the following are subsequent events that must be disclosed in the notes to the financial statements?Which of the following is a subsequent event that must be disclosed in the notes to the financial statements? The issuance of debt or equity securities. Which of the following are required disclosures for related-party transactions?
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