Subsequent events may indicate conditions that did not exist at the balance sheet date,and should be considered for footnote disclosure.

Question

Quizplus · Accepted Answer

Subsequent events refer to events and transactions that occur after the balance sheet date but before the financial statements are issued. These events are important because they may have an impact on the financial statements and may require disclosure in the footnotes. Therefore, it is true that subsequent events should be considered for footnote disclosure even if they did not exist at the balance sheet date.

Subsequent Events May Indicate Conditions That Did Not Exist at the Balance