Public companies now have a new requirement to follow in accounting for events that take place after a financial statement period ends but before the statements are issued.
The Financial Accounting Standards Board published Accounting Standards Update No. 2010-09 to amend Accounting Standards Codification Topic 855, Subsequent Events, which describes how entities should treat “subsequent events.” That refers to significant events that might be of interest to investors taking place after a financial statement period closes but before results of the period are disclosed to investors and regulators.
