GASB Issues Guidance on Subsequent Events

GASB Standards Updates

Published December 17th, 2025

Detected March 13th, 2026

Summary

The Governmental Accounting Standards Board (GASB) has issued Statement No. 105, 'Subsequent Events,' to improve financial reporting requirements for subsequent events. The guidance is effective for fiscal years beginning after June 15, 2026.

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What changed

The Governmental Accounting Standards Board (GASB) has issued Statement No. 105, 'Subsequent Events,' replacing previous guidance found in GASB Statement No. 56. This new statement aims to enhance consistency in the application of requirements for subsequent events by defining them as transactions or events occurring after the financial statement date but before the statements are available to be issued. It also clarifies the types of subsequent events, when note disclosures are required, and the specific information to be included in those disclosures.

The requirements of Statement No. 105 are effective for fiscal years beginning after June 15, 2026. While earlier application is encouraged, entities must ensure their financial reporting practices align with the new definitions and disclosure requirements for periods on or after this effective date to maintain compliance with GASB standards.

What to do next

Review GASB Statement No. 105 for applicability to your entity's financial reporting.
Update internal policies and procedures related to the identification and disclosure of subsequent events.
Ensure compliance with the new requirements for fiscal years beginning after June 15, 2026.

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GASB Issues Guidance on Subsequent Events

Norwalk, CT, December 17, 2025 —The Governmental Accounting Standards Board (GASB) has issued Statement No. 105, Subsequent Events, which is designed to improve the financial reporting requirements for subsequent events.

GASB’s pre-agenda research on subsequent events showed diversity in practice in the application of the previously existing guidance on subsequent events, which was contained in GASB Statement No. 56, Codification of Accounting and Financial Reporting Guidance Contained in the AICPA Statements on Auditing Standards. This Statement, therefore, is intended 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 clarifies the different types of subsequent events, when note disclosures are required, and the information that should be included in those 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.

GASB Statement No. 105 is available on the GASB website, www.gasb.org.