GASB issues guidance on subsequent events

GASB issued Statement No. 105, Subsequent Events, which is guidance designed to improve the financial reporting requirements and enhance consistency in the application of those requirements for subsequent events.

The statement, according to the news release, defines subsequent events as transactions or other events that occur after the date of the financial reporting statements but before the date the financial statements are available to be issued. The definition of subsequent events in the statement modifies the subsequent events time frame throughout GASB literature.

Statement No. 105 also clarifies types of subsequent events, when note disclosures are required, and information that should be included in those disclosures.

The requirements of Statement 105 are effective for fiscal years beginning after June 15, 2026, and all reporting periods thereafter.

— To comment on this article or to suggest an idea for another article, contact Kevin Brewer at Kevin.Brewer@aicpa-cima.com.