The GASB has issued Statement No. 105, Subsequent Events, which was created to enhance the financial reporting requirements for subsequent events.

GASB’s pre-agenda research on subsequent events demonstrated that diversity in practice in applying previously existing guidance on subsequent events, which was in GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards.

Thus, this Statement is meant to enhance consistency in the application of requirements for subsequent events.

The Statement defines subsequent events as transactions or other events that occur after the date of the financial reporting statements but before the date the financial statements are available to be issued. The definition of subsequent events in this Statement modifies the subsequent events time frame throughout the GASB literature.

Statement No. 105 also makes clearer the various kinds of subsequent events, when note disclosures are required, and the information that must be part of the note disclosures.

The requirements of Statement 105 are effective for fiscal year beginning after June 15, 2026, and all reporting periods thereafter. Earlier application is encouraged.