An example of a nonrecognized subsequent event which may require disclosure if it is significant is the issuance of bonds or equity securities by a company.

Question

Quizplus · Accepted Answer

Nonrecognized subsequent events, such as the issuance of bonds or equity securities after the balance sheet date but before the financial statements are issued, do not affect the financial statements as of the balance sheet date. However, if significant, they may require disclosure to inform users of the financial statements about important events that occurred after the balance sheet date.

An Example of a Nonrecognized Subsequent Event Which May Require