All-Events Test [Tax] Law & Legal Definition


All-events test is a test under U.S. federal income tax law. According to the test all events fixing an accrual-method, taxpayer's right to receive income, or incur expense must occur before the taxpayer can report an item of income or expense.

An all-events test is met when

(1)all events have occurred that fix the fact of liability; and

(2)the liability can be determined with reasonable accuracy.