What it is
ASC 855 asks management to evaluate events after the balance sheet date through the date the financial statements are issued or available to be issued, and for entities that are not SEC filers to disclose that date. Recognized events adjust the statements; nonrecognized events are disclosed with their nature and an estimate of the financial effect, or a statement that an estimate cannot be made.
This checklist covers the note content. The audit procedures under AU-C 560 are in the subsequent events audit checklist. For audited statements the note date is normally the report date, so keep them aligned.
When to use it
- When drafting the subsequent events note.
- When a covenant violation, new financing or litigation arises after year end.
- To align the note date with the report date.
What’s inside
- Evaluation and the date disclosed
- Recognized events
- Nonrecognized events and common examples
- Other items and representations
Standard cited
This template follows ASC 855 / AU-C 560. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 560 explained.
Questions
Which date should the note state?
The date through which subsequent events were evaluated and whether it is the date the statements were issued or available to be issued. For audited statements this normally matches the audit report date.
What is a nonrecognized event?
An event arising after the balance sheet date that does not provide evidence about conditions at that date, such as a business combination, new debt, a casualty loss or litigation arising after year end. Disclose it if it is material.
Is this checklist complete?
No. It is a prompt list paraphrased from the standard, not a substitute for the Codification or a full commercial disclosure checklist. Check each item against the current ASC text and any ASUs issued since the date you last checked, and add industry-specific requirements.
Related templates
- Subsequent Events Checklist and Memo (AU-C 560 / ASC 855)
- GAAP Disclosure Checklist (Private Company, Short Form)
- Disclosure Checklist: Going Concern (ASC 205-40)
Last updated 11/05/2026. All free templates.