The scope of ASC 855, Subsequent Events, is broad and encompasses all subsequent events that are not addressed in other parts of US GAAP. For example, US GAAP specifically addresses the presentation and disclosure of subsequent events for income taxes (ASC 740-10-25-15), EPS (ASC 260-10-55-12), and gain contingencies (ASC 450-30-25-1). US GAAP also includes industry-specific subsequent events guidance, such as ASC 926-855, which addresses the treatment of a specific subsequent event in the film industry.

In addition to the FASB guidance, SEC registrants are required to evaluate the guidance within SAB Topic 4.C, Change in Capital Structure (see FSP 28.5.2).

ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, changes the estimation of credit losses from an “incurred loss” model to an “expected loss” model (the Current Expected Credit Loss model, or CECL), which resulted in certain clarifications to ASC 855.

Representatives from the FASB staff and the staff of the SEC’s Office of the Chief Accountant jointly provided their perspectives on the application of ASC 855 to several specific situations related to the CECL model. Refer to LI 7.9 for further details. For public business entities that are SEC filers, ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. All entities may early adopt ASU 2016-13 as of fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.

The accounting and disclosure requirements of ASU 2016-13 are covered in PwC’s Loans and investments guide, and are not discussed in this guide.