FASB Releases Statement on Subsequent Events
June 17, 2009
FASB Statement No. 165, "Subsequent Events" (SFAS 165), brings the principles for disclosure of subsequent events into the accounting literature established by FASB. Those principles previously existed only in auditing literature, and FASB believes that the accounting guidance on subsequent events should be in generally accepted accounting principles (GAAP) and directed specifically to management of reporting entities.
Releasing this statement is consistent with FASB's efforts to codify all GAAP so that they derive from a single source-its codification, which is expected to be effective July 1, 2009. Similar to the auditing standards on which the accounting standards are based, SFAS 165 defines two types of subsequent events: recognized and non-recognized.
SFAS 165 defines the following:
- The period after the balance sheet date during which management should evaluate events or transactions that may occur for potential recognition or disclosure
- The circumstances under which events or transactions occurring after the balance sheet date should be recognized in financial statements
- The disclosures that should be made about events or transactions that occurred after the balance sheet date
Institutions can find more on this statement, other pronouncements, and higher education industry guidance in NACUBO's Financial Accounting and Reporting Manual (FARM). Join the hundreds of NACCUBO members who subscribe to FARM.
Staff Resource: Sue Menditto, director, accounting policy
- Federal Court Postpones Effective Date of Overtime Rule
- 1098-T Box 1 Reporting Will Not be Required Until 2018 Tax Year
- EPA Issues Hazardous Waste Generator Improvements Rule
- 2017 Intermediate Accounting and Reporting - Winter
January 23-24, 2017
- 2017 Endowment and Debt Management Forum
February 1-3, 2017
- ON-DEMAND: The CBO's Role in Diversity and Inclusion on Campus
- ON-DEMAND: The Clery Act: Strategic Planning to Mitigate Institutional Risk
- ON-DEMAND: Title IX: Key Issues Surrounding Institutional Compliance
- ON-DEMAND: NACUBO Live! Higher Education Accounting Forum
- ON-DEMAND: Responsibility Center Management: Two Different Perspectives