There are two types of subsequent events under GAAP;those that require retroactive recognition,and those that do not require retroactive recognition but require disclosure in the notes to the financial statements.

Question

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This statement is true. GAAP recognizes subsequent events that require retroactive recognition, which means the impact of the event should be reflected in the financial statements for the previous period. However, there are also subsequent events that do not require retroactive recognition but should be disclosed in the notes to the financial statements.

There Are Two Types of Subsequent Events Under GAAP;those That