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A company should disclose the date through which there has been an evaluation of subsequent events, as well as either the date when the financial statements were issued or when they were available to be issued.

There are two types of subsequent events: Adjusting events. An event that provides additional information about pre-existing conditions that existed on the balance sheet date. Non-adjusting events. A subsequent event that provides new information about a condition that did not exist on the balance sheet date.

Generally, there are two criteria that are both required for a subsequent event to need disclosure. The event should have a determinable significant effect on the balance sheet at the time of occurrence or on the future operations of the reporting entity.

Examples of adjusting events include: ? events that indicate that the going concern assumption in relation to the whole or part of the entity is not appropriate; ? settlements after reporting date of court cases that confirm the entity had a present obligation at reporting date; ? receipt of information after reporting

The first type consists of events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements (that is, recognized subsequent events).

Subsequent events clarify information about a business' financial picture as reflected by the balance sheet, a financial report that includes all transactions through the report date.

Type II subsequent events provide evidence about conditions that did not exist on or before the balance sheet date. These events are disclosed, but are not recognized in the financial statements.