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Video instructions and help with filling out and completing Which Form 5495 Subsequent

Instructions and Help about Which Form 5495 Subsequent

I else here and today we'll be talking about subsequent events what is a subsequent event it's an event that occurs between a business's year-end date and the date that the financial statements are approved for issue what does that mean let's look at a timeline to see a fiscal year has a start date and a year end date the fiscal year lasts either one year or an operating cycle whichever is longer I made this fiscal year one year ending December 31st note that two-thirds of all companies have a year end date that's December 31st or close to it so it makes sense that you frequently see this date as a year end date for companies in textbooks between the start and end dates of the fiscal year is the reporting period all transactions that take place during this period must be reported in the financial statements that's the basis of accrual accounting which is required under IFRS and Aspie the year-end date is the cutoff point for recognizing transactions in that fiscal period the cutoff date is the point when one reporting period ends and the next one starts however after the year-end several weeks or months may pass before the Board of Directors approves the financial statements for issue during that time the business will do things like count and price inventory prepare adjusting entries ensure the accounting records are complete and have the financial statements audited this period between the cutoff date and the date when the financial statements are approved is called the subsequent events period during this period events that impact the company's business in a significant way may occur if material should these events be reflected in the financial statements even though they happened after the cutoff date the simple answer...

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