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Section PS 2400 - Subsequent events

Effective date:

March 1, 1997

Published by the PSAB:

March 1997

Overview

This Section establishes standards on how to account for and disclose events occurring between the financial statement date and the date of their completion.

Financial statements are prepared to reflect a government's financial position at a particular date and changes in financial position for a period ended on that date. However, events occurring after the financial statement date may indicate a need to adjust items or to make specific disclosures in those statements. Therefore, in preparing financial statements, the implications and financial effects of subsequent events would be considered.

Financial statements should be adjusted when events occurring between the date of the financial statements and the date of their completion provide sufficient, additional evidence relating to conditions that existed at the date of the financial statements.

Financial statements should not be adjusted for, but disclosure should be made of, those events occurring between the date of the financial statements and the date of their completion that do not relate to conditions that existed at the date of the financial statements but:

  • cause significant changes to assets or liabilities in the subsequent period; or
  • will, or may, have a significant effect on the future operations of the government.

History of Section PS 2400

Date

Development

Comments

March 1997

New Section

This new Section deals with the implications and financial effects of events occurring after the financial statement date and before the completion of the financial statements.

March 2012

Annual improvements

Paragraph .09A, is added to clarify the meaning of the date of completion of financial statements

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.