Lesson: Subsequent Events

In this lesson, Nick Palazzolo, CPA, dives into the intricacies of subsequent events and their significance within financial reporting. Exploring events that occur after the balance sheet date but before the financial statements are issued, Nick clarifies the need to disclose and explain significant financial activities during this period. With practical examples such as the resolution of a lawsuit or occurrence of a significant warehouse fire, he outlines when and how the financial statements should be adjusted or supplemented with additional notes. Nick ensures all the necessary details are covered so that any event that provides further evidence about conditions existing at the balance sheet date or any new events arising are appropriately reported, making for an informative and comprehensive approach to understanding subsequent events.