A Type II subsequent event usually requires
A) An adjustment to the financial statements and the footnotes.
B) An adjustment to the financial statements but no special disclosure is required.
C) Disclosure in the footnotes.
D) Neither an adjustment to the financial statements nor disclosure in the footnotes.

Question

Quizplus · Accepted Answer

A Type II subsequent event is an event that provides additional evidence about conditions that existed at the balance sheet date. It requires disclosure in the footnotes because it does not impact the financial statements but can affect future periods.

A Type II Subsequent Event Usually Requires