A material type II subsequent event:
A) requires disclosure in the notes to the financial statements.
B) requires recognition in the body of the financial statements.
C) Either "a" or "b" depending on the circumstances.
D) None of the above.

Question

Quizplus · Accepted Answer

A material type II subsequent event requires disclosure in the notes to the financial statements to inform users about events that occurred after the balance sheet date but before the financial statements were issued or available to be issued. These events provide additional information about conditions that did not exist at the balance sheet date.

A Material Type II Subsequent Event