What does balance sheet date mean on the CPA exam?
Balance sheet date. The last day of the reporting period. Events after it get different treatment depending on whether they reveal a condition that already existed at that date.
Defined against ASC 855-10-20.
Which CPA exam sections use balance sheet date?
Balance sheet date appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
Other terms defined against ASC 855-10
- subsequent event: Something that happens between the balance sheet date and the date the statements are issued.
- Type 1 subsequent event: A recognized subsequent event: it gives evidence about a condition that already existed at the balance sheet date, so the statements are adjusted.
- Type 2 subsequent event: A nonrecognized subsequent event: the condition came into existence after the balance sheet date, so it is disclosed and never adjusted.
Related terms
- report release date: The date the auditor grants the entity permission to use the report.
- measurement date: The date at which an amount is fixed for accounting.
- built-in loss: Loss that already existed in property before it changed hands, measured at the transfer date.
- balance sheet: A snapshot at one date of what the entity owns, what it owes, and the owners' residual.
- acquisition-date fair value: What something was worth on the day control changed hands.
- retrospective review: Comparing last period's accounting estimates against what actually happened, to see whether management's judgments lean consistently in one direction.