Assume that a company has a calendar year of January 1, 2021-December 31, 2021. March 15, 2022 was the end of the period for gathering information pertaining to the financial statements. The financial statements were authorized for issue on March 24, 2022. What is the cut off point for the "recognition" of transactions and events in a reporting period?

Question

Quizplus · Accepted Answer

The cut-off point for the recognition of transactions and events in a reporting period is the end of that period, which in this case is December 31, 2021. Transactions and events are recognized up to this date for the financial statements of the year January 1, 2021, to December 31, 2021.

Assume That a Company Has a Calendar Year of January