Also referred to as a subsequent event. An event occurring after the date of the balance sheet, but prior to the date that the balance sheet is actually released. For example, a balance sheet dated December 31 might be released on January 26 due to the time required to prepare adjusting entries, write footnotes, and perhaps be audited or reviewed by a CPA firm. In this example a significant event occurring after December 31 but before January 27 is a post balance sheet event. The event could require changing some of the amounts on the balance sheet dated December 31 and on the income statement for the year ending December 31. On the other hand, some events will not require changing any of the amounts on the balance sheet dated December 31 or the income statement for the year ending on December 31. The latter items if significant will likely require a disclosure in the notes to December 31 financial statements.
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For the past 52 years, Harold Averkamp (CPA, MBA) has
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