Facebook Twitter

GAAP For Non-Profits › General Reporting Matters

Subsequent Events

Subsequent to the organization’s year-end, events may occur that either effect the results presented in the financial statements or have a significant impact on subsequent operations.

The decision to amend the financial statement balances for these events would consider any procedures and requirements placed on the organization for the timing of the completion and release of the financial statements, and any requirements to amend financial statements. If the statements are subject to audit, the auditor would consider the impact of any subsequent events in forming the audit opinion.

An event that has a significant impact on subsequent results or operations should be disclosed in the notes, describing the nature of the event and providing an estimate of the financial impact. Where no estimate on the financial impact can be made, this should be stated. (3820.07.09.10.11)