The Financial Accounting Standards Board has published its final word on when companies should consider the effects of “subsequent events,” or game-changing events that occur after the balance sheet date but before financial statements for the period are published.

Financial Accounting Standard No. 165: Subsequent Events is intended to clarify when management should include the effects of subsequent events in financial statements even if the events occurred outside the financial statement period.

Generally, the standard says companies should look at litigation that is settled after a financial statement period closes and consider its effects when recording liabilities for the period if the litigation meets the criteria spelled out in the standard. The new rule also requires companies to look at assets that are realized after the period closes, such as receivables and inventory or the settlement of an estimated liability, to determine if an adjustment is warranted.

The new standard explains what period of time management should take into account when considering the need to recognize subsequent events, what circumstances should lead an entity to recognize a subsequent event, and what kind of disclosures entities should make related to such events.

FASB says the standard doesn’t significantly change the kinds of events that should be reported, but it compels management to take into account when financial statements will be available to be published. Ultimately, that will gives users of financial statement more specific information about the period of time management considered in reporting on subsequent events.

When FASB first introduced the statement on subsequent events, it also proposed a new standard on the going concern assessment, or the determination of whether a company has the wherewithal to remain in business.

Although auditors usually are charged with making the going concern call, FASB’s proposal would require management to look at least a year into its future, do its own analysis, and report its findings. The board has modified its original proposal after feedback and is preparing a final vote on the finished standard.