Disclosures related to conditions existing at the balance sheet date might need to be updated, to reflect new information received after the balance sheet date, even where no adjustments are required to the figures. One example is where information obtained after the balance sheet date gives evidence of a contingent liability that existed at the balance sheet date, such as the progress of a legal case that was already underway at the balance sheet date.

Date of authorization of the financial statements for issue

IAS 10 requires an entity to disclose both the date on which the financial statements are authorized for issue and who gives that authorization. The board might authorize the financial statements for issue; IAS 10 requires the financial statements to disclose that fact. If the entity’s owners or other parties have the power to amend the financial statements after issue, that fact should be disclosed.

• The date of authorization is disclosed so that users understand that the financial statements do not reflect events after this date.
• The process of authorization of financial statements will vary according to the management structure and the legal environment in which an entity operates.

For example, an entity might submit its financial statements to shareholders for approval after they have been authorized for issue by, the board. In such situations, the date of authorization for the issue of the financial statements is the date of the board’s authorization for the issue and not the date on which the shareholders approve them. IAS 10 devotes several paragraphs to situations that might arise in various jurisdictions.

Change of financial statements after authorization

In the unusual situation where the supervisory board (or similar body) changes the financial statements after they were authorized for issue by the management board, disclosure is given of the date of authorization for the issue of the financial statements and the date of the subsequent changes.

Where amendments are suggested by the supervisory board, the date of authorization for the issue of the financial statements is the date when management re-authorizes them for issue.