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Events after the Balance Sheet Date- SFAS 165
Finance & Accounting
Pages 8 (2008 words)
SFAS 165 – Events after Balance Sheet Date Introduction The biggest dilemma that public entities generally face while reporting the financial statement is that whether the subsequent event (events after balance sheet date) should be recognized and disclosed in the financial statements or not (Deloitte, 2012).
This standard has also provided some examples of such events which should be or should not be recognized and reported in the financial statements. This article examines objective of SFAS 165 in a detailed manner such that the important paragraphs of the Statement are directly reproduced from the Statement so that actual wordings of the Statements regarding the important points of the Statement can be presented in their intended meaning. This article is structured in such a manner that the first section highlights the overview of this Statement followed by the section which focuses upon the objectives of this Statement. Next section emphasizes the recognition criteria of this statement along with some of the examples taken directly from the Statement which highlight both types of events, the one which should be recognized as well as the other ones which should not be. The subsequent section outlines the comparison of SFAS 165 of GAAP with IAS 10 of IFRS. After that an example from Thomson One Banker database is reported in this article followed by discussion on that example. Conclusion is the last part of this article which leads to the end of this article. Overview of SFAS 165 Statement of Financial Accounting Standards 165 (SFAS 165) discusses the events after the balance sheet date. Those events are also referred to as subsequent events. ...
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