Project Update

Subsequent Events

Last Updated: June 5, 2009 (Updated sections are indicated with an asterisk *)

The staff has prepared this summary of Board decisions for information purposes only. Those Board decisions are tentative and do not change current accounting. Official positions of the FASB are determined only after extensive due process and deliberations.

Project Objective
*Due Process Documents
*Decisions Reached at the Last Meeting
*Summary of Decisions Reached to Date
*Next Steps
Board/Other Public Meeting Dates
Background Information
Contact Information

Project Objective

The objective of this project is to incorporate into FASB literature guidance on recognition and disclosure related to subsequent events, that is, events or transactions that occur after the balance sheet date but before financial statements are issued or available to be issued.

*Due Process Documents

On May 28, 2009, the Board completed this project with the issuance of Statement No. 165, Subsequent Events.

*Statement 165

Comment Letter Summary (2008 Exposure Draft, Subsequent Events)

*Decisions Reached at the Last Meeting

See minutes below.

*Summary of Decisions Reached to Date (As of 5/28/09)

See final Statement.

*Next Steps

None.

*Board/Other Public Meeting Dates

The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final Statement, Interpretation, FSP, or Statement 133 Implementation Issue.

The following are links to the minutes for each meeting.

*February 18, 2009 Board Meeting—Comment Letter Discussion
August 27, 2008 Board Meeting—Codification Discussion
September 19, 2007 Board Meeting—Removal from Board agenda
May 30, 2007 Board Meeting—Convergence Issues
August 17, 2005 Board Meeting—Agenda Decision

Background Information

The Board added this project to its agenda on August 17, 2005.

The current accounting requirements for subsequent events are contained in AU Section 560. AU Section 560 prescribes the accounting requirements for two types of subsequent events: the first type consists of those events that provide additional evidence about conditions that existed at the balance sheet date and the second type consists of those events that provide evidence with respect to conditions that did not exist at the balance sheet date but arose subsequent to that date.

International financial reporting standards (IFRS) have a separate accounting standard for subsequent events, IAS 10. While the accounting requirements in AU Section 560 and IAS 10 are converged in principle, there are some minor differences between the two standards.

Constituents have expressed concern that the accounting requirements are currently part of the auditing literature and have suggested that they should be moved into the FASB literature. Moving the accounting requirements out of the auditing literature and into the accounting literature will assist the Board's codification and retrieval project and also provide an opportunity to consider international convergence issues.

Contact Information

Melissa A. Maroney
Project Manager
mamaroney@fasb.org