Asked by Brandon Cannon on Jun 19, 2024
Verified
Subsequent events are required to be disclosed if they are material and likely to influence investors' appraisal of the risk and return prospects of the reporting entity.
Subsequent Events
Events that occur after the balance sheet date but before the financial statements are issued or available to be issued, affecting the financial information presented.
Material and Likely
A term used to describe when an event is both significant enough to impact financial decisions and has a reasonable chance of occurring.
- Evaluate the importance of related party transactions and subsequent events in the context of financial reporting.
Verified Answer
KB
Karyna BondarchukJun 20, 2024
Final Answer :
True
Explanation :
This is a requirement under Generally Accepted Accounting Principles (GAAP) for financial reporting.
Learning Objectives
- Evaluate the importance of related party transactions and subsequent events in the context of financial reporting.
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