External events

exchange between the company and a separate economic entity.

External events are transactions between the business and outside parties (customers, suppliers, banks) that create objective evidence and usually trigger accounting recognition.

- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.

- Example: Teams reference **External events** when defining terms in manuals, policies, or training materials.

- Why it matters: Improves clarity and consistency across documentation and decision-making.