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Should the information pertaining to actual claims incurred as of the balance sheet date that became available after the balance sheet date be considered in determining management’s best estimate of the medical benefits payable? If so, what impact does this information have on the amount recognized or disclosed? 2. How, if at all, is the modification to the line of credit recognized or disclosed in the financial statements? Copyright 2021 Deloitte Development LLC All Rights Reserved. Case 12-2c: To Recognize or Not to Recognize, That Is the Question Page 3 3. How, if at all, is the acquisition of Hamlet recognized or disclosed in the financial statements? 4. What should Shakespeare state in its disclosure regarding the date through which the financial statements were evaluated for subsequent events? How would this disclosure change if Shakespeare were an SEC filer? 5. Shakespeare is contemplating adopting IFRSs in the coming year. What guidance in IFRSs addresses events that occur after the balance sheet date but before the financial statements are issued? What does this guidance state regarding the recognition, measurement, or disclosure of such events?
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