Video: Subsequent Events Evaluation Period

In this lesson, Nick Palazzolo, CPA, delves into the process of evaluating subsequent events in the period after the fiscal year-end but before the financial statements are issued. He distinguishes between the distinct requirements for SEC filers and non-filers, examining the timeline for each to evaluate subsequent events—up to the issuance date for the former and up to the date the financials are available to be issued for the latter. Nick further elaborates on the significance of disclosing the evaluation date in the financials, particularly for non-SEC filers, to denote when they ceased reviewing subsequent events. This clear delineation helps ensure that users of the financial statements are aware of the evaluation scope for any significant events that could affect the financials.