Video: Subsequent Events Objectives

In this lesson, Nick Palazzolo, CPA, delves into the intricacies of identifying and accounting for subsequent events. He outlines the objectives as per the AICPA, including the ability to determine when a particular event qualifies as a subsequent event, the steps necessary to adjust financial statements or note disclosures accordingly, and how to calculate the adjustments required. Using practical examples such as the significance of a warehouse fire scenario, Nick unpacks the varying levels of impact subsequent events can have on a company's financial portrayal, and how to discern between when to adjust the financials, when to simply disclose, or when action may not be necessary at all. This lesson equips you with the tools to effectively analyze and interpret subsequent events for accurate financial reporting.