Moneyzine
Contents
/Investment Guides /Post Balance Sheet Events

Post Balance Sheet Events

Moneyzine Editor
Author: 
Moneyzine Editor
2 mins
September 20th, 2023
Advertiser Disclosure

Definition

The financial accounting term post balance sheet events refers to the disclosure of transactions and events occurring after the date of the balance sheet, but before the financial statements of the company have been issued to the public.

Explanation

Post balance sheet events, also known as subsequent events, are one of several types of information that is supplementary to the items appearing on a company's balance sheet. It can often take weeks after the close of an accounting period until the data is assembled into a financial statement. If materially significant information is gained during that time, disclosure is required. Generally, there are two categories of events or transactions that occur after the balance sheet date that can have a material effect on financial statements and need to be disclosed:

  • Events Requiring Adjustment: includes conditions that existed at the balance sheet date that affect the estimates used in the preparation of the company's financial reports. If material, these events require an adjustment to the company's financial statements. For example, the company may have estimated inventory and receivables at a certain level at yearend, but a positive review on a popular website resulted in an unexpected spike in sales.

  • Events Requiring Disclosure: includes conditions that did not exist at the balance sheet date but have a material effect on the financial condition of the company. These events should be addressed either through notes, supplementary tables of data or even pro-forma statements. For example, the company may have acquired another business, settled a lawsuit, or experienced a significant loss or gain on marketable securities.

Related Terms

gain and loss contingencies, contracts and negotiations, valuations and accounting policies, financial statements

Explore Investing Further

Trading has never been easier, thanks to the rise of online platforms that enable you to buy and sell various assets at the click of a button. But with so many options available, it can be challenging to decide which platform is right for you.
Looking for a way to avoid swap fees while trading forex?
Below listed are the small reviews of the top 10 ETF brokers available across the United States.
Our top beginner's pick for copy trading is eToro. Read on for more details, plus seven good alternatives.
Swing trading stocks can be a great way for investors to take advantage of short-term stock market movements and gain significant returns. If you're interested in swing trading, the key to success lies in selecting the right stocks to buy and sell quickly for a profit.
The table below lists the best stock picks under $2, listed on public exchanges.
The table below lists the best stock picks under $1, listed both on public and OTC exchanges.
This section will highlight the best EV-trading penny stocks available in the United States.
The demand for sustainable energy has grown rapidly in recent years. This has resulted in increased scrutiny of the automotive market. As a result, the electric vehicle (EV) industry has made significant advancements.
Intelligent Bio Solutions Inc. is a life sciences company, founded in 2016 with headquarters in New York and is engaged in performing diagnostic tests, real-time monitoring, and non-invasive surgery for its patients. The firm has developed a CoV-2 Biosensor, which can be used in RNA virus detection.
Hour Loop was founded in 2013 with headquarters in Redmond, Washington. It’s an online retailer involved in e-commerce in the United States that hit the public markets on Jan 7th of 2022. The company sells home/garden decor, electronic products, kitchenware, and apparel through walmart.com, amazon.com, and hourloop.com.

Related Content

Biden Or Trump: Who Is Better For The Economy And Stocks?
Yup. This is one of those articles. It's an election year, and here in the U.S., we get to decide which old dude who’s been alive long enough to remember when there were only 48 states in the U.S. will be the leader of the free world.
March 19th, 2024
When it comes to strategic business planning, accounting is front and center, shaping the course of action. At least it should be.
March 14th, 2024
DRIP Brokers: Best Brokers for Dividend Investing for March 2024
Reinvesting dividends could mean compound growth for your portfolio. But reinvesting them manually can be a hassle. This is why you could benefit from a dividend reinvestment plan (DRIP).
March 12th, 2024
How To Invest in Real Estate Without Becoming a Landlord
We all know that in order to build wealth and prepare for retirement, investing is the key. However, it can be hard to figure out what to invest in and how to put your money to good use. One of the most talked about ways to build wealth is owning property and being a landlord to bring in passive income. But what if you don’t want to do that? You can still invest in real estate!
March 6th, 2024
Investing In Nature: The Closest You'll Get To Your Money Growing On Trees
ESG (Environmental, Social, and Governance) has become a polluted word for many traders and investors - but that doesn't mean it's going completely away. Nor does that mean you can't profit from nature or sustainable practices. But there are some opportunities in the regenerative ag, conservation, and green real estate spaces.
February 29th, 2024

Contributors

Moneyzine 2024. All Rights Reserved.