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The period extending from the financial statement date until release of the statements is the subsequent events period. Prior to finalizing an organization’s financial statements, management must evaluate events that occur during this period to determine whether they affect amounts reported in the financial statements or require disclosure in the notes to the financial statements. ASC 855, Subsequent events, describes two types of subsequent events: adjusting and non-adjusting. See FSP 28 for additional discussion on evaluating subsequent events.
In accordance with ASC 855-10-50-1, the financial statements must disclose the date through which management evaluated subsequent events, which is either the date the financial statements are actually issued or, if not widely distributed, the date the financial statements were available to be issued.

ASC 855-10-50-1

If an entity is not an SEC filer, then the entity shall disclose both of the following:
  1. The date through which subsequent events have been evaluated
  2. Whether that date is either of the following:
    1. The date the financial statements were issued
    2. The date the financial statements were available to be issued.

If wide distribution is expected, management is required to evaluate subsequent events through the date that the financial statements are issued, which, as defined in the ASC Master Glossary, is the date of the first wide distribution. See NP 1.6.1 for a description of “wide distribution.”

ASC Master Glossary

Financial statements are issued: Financial statements are considered issued when they are widely distributed to shareholders and other financial statement users for general use and reliance in a form and format that complies with GAAP.

1.6.1 Meaning of “wide distribution” when determining issuance date

Most NFP conduit bond obligors whose securities trade in public markets are required to file their financial statements electronically with the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access (EMMA) website (see NP 11.7). For those entities, the date of first wide distribution (and thus, the financial statement issuance date) is typically the date that the financial statements are posted to EMMA and are broadly available to the investing public.
We believe that posting financial statements to an entity’s website or filing statements with state or federal regulators that make the information available to the public through their websites (as some state charities regulators do) would also constitute “wide distribution.”

1.6.2 When financial statements are “available to be issued”

Entities that do not widely distribute their financial statements must evaluate subsequent events through the date that the financial statements are available to be issued. This is the date when they are complete in a form and format that complies with GAAP and have all of the approvals (for example, from management and the governing board) necessary for issuance. The ASC Master Glossary describes the date financial statements are available to be issued.

ASC Master Glossary

Financial statements are available to be issued: Financial statements are considered available to be issued when they are complete in a form and format that complies with GAAP and all approvals necessary for issuance have been obtained, for example, from management, the board of directors, and/or significant shareholders. The process involved in creating and distributing the financial statements will vary depending on an entity’s management and corporate governance structure as well as statutory and regulatory requirements.

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