Subsequent Event
/ˈsʌbsɪkwənt ɪˈvent/
Definitions
- (n.) An event occurring after the balance sheet date but before the financial statements are issued, potentially affecting financial statement disclosures or adjustments.
The accountant reviewed subsequent events to determine if any adjustments were necessary for the financial statements.
- (n.) An event following the execution of a contract that may affect the parties' rights or obligations under that contract.
The parties negotiated a clause addressing subsequent events that could trigger renegotiation of contract terms.
Forms
- subsequent events
Related terms
Commentary
In financial reporting, subsequent events require careful evaluation to determine if adjustments or disclosures are necessary; in contract law, such events can impact performance or obligations and are often governed by specific clauses.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.