BrewBilt Brewing Co (BRBL)

[Nistel]

It's simply financial accounting law. Any material event after balance sheet date MUST be included in the subsequent events. As they did not include these huge "guaranteed revenues" which would definitely be material and change investor's decisions if true, it simply implies that these were not so "guaranteed" as they have been presented, under the assumption that they would even exist at all. Period.



The definition of a subsequent events are generally defined as events that occurs after the year end period but before the financial statements have been issued. A subsequent event falls underneath the disclosure principle...

The Full Disclosure Principle in financial reporting exists so that individuals, from potential investors to executives, can be made aware of the financial situation in which a company exists.

...subsequent event accounting could dramatically alter an investor’s opinion. It might be misleading to issue the statements as they are at period end. There are generally two types of subsequent events.

2) Type 2 or non-recognized events are then events that were not ongoing and occurred after the year end. These accounting subsequent events should not be disclosed within the current financials, but a subsequent event footnote disclosure should be made in the financials so that investors know that the event did occur.