medium · Financial Accounting accounting-cycle-financial-statements

Which of the following would be considered a 'Type 1' subsequent event related to impairment if it occurred after the balance sheet date but before financial statement issuance?

1. The public announcement of a new competitor entering the market in March of the following year
2. The bankruptcy of a major customer that clarifies the value of a reporting unit's receivables at year-end
3. A fire that completely destroys the company's entire manufacturing plant in February of the following year
4. A decline in the company's publicly traded stock price caused by a sudden geopolitical event occurring in January

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