Type II subsequent events Provide two examples of a Type II subsequent event and explain how these events would be treated in the financial statements
The instructor must review the student's responses, as they may vary.
Examples may include, but are not exclusive to:
1 . Significant unrealized losses on securities held as investments.
2 . Issuance of stocks, options, warrants and/or bonds.
3 . Acquisition of subsidiary.
4 . Public offering.
5 . Entering into material agreements.
6 . Uninsured loss of significant assets.
Type II subsequent events do not reflect conditions existing as of the balance sheet date and so do not require adjustment but may require disclosure in the financial statements.
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