Which of the following events would not be treated as a subsequent event?
A) settlement of litigation between the year end and the issuance of the financial statements
B) sale of a business segment between the year end and the issuance of financial statements
C) recalculation of estimated salvage values for property and equipment at year end
D) stock split occurring ten days after the end of the fiscal year

Question

Quizplus · Accepted Answer

Recalculation of estimated salvage values for property and equipment at year end is an adjustment to estimates and not an event occurring after the balance sheet date, hence it is not a subsequent event.

Which of the Following Events Would Not Be Treated as a Subsequent