Date of the financial statement are issued
“Date the financial statements are issued” is the date that the auditor’s report and audited financial statements are made available to third parties, which may be, in many circumstances, the date that they are filed with a regulatory authority.
The term “subsequent events” is used to refer to both events occurring between the date of the financial statements and the date of the auditor’s report and facts discovered after the date of the auditor’s report.
Facts Discovered After the Financial Statements have been Issued:
After the financial statements have been issued, the auditor has no obligation to inquire about such statements. When, after the financial statements have been issued, the auditor becomes aware of a fact that existed at the date of the auditor’s report and which, if known at that date, may have caused the auditor to modify the auditor’s report, the auditor should consider whether the financial statements need revision, should discuss the matter with management and should take action appropriate in the circumstances [International Federation of Accountants, p. 4].
When management revises the financial statements, the auditor will carry out the audit procedures necessary in the circumstances and will review the steps taken by management to ensure that anyone in receipt of the previously issued financial statements together with the auditor’s report thereon is informed of the situation, and would issue a new report on the revised financial statements.
The new auditor’s report should include an emphasis on a matter paragraph referring to a note to the financial statements that more extensively discusses the reason for revising the previously issued financial statements and the earlier report issued by the auditor.
The new auditor’s report would be dated not earlier than the date of approval of the revised financial statements and, accordingly, would ordinarily be extended to the date of the new auditor’s report.
When management does not take the necessary steps to ensure that anyone in receipt of the previously issued financial statements together with the auditor’s report thereon is informed of the situation and does not revise the financial statements in circumstances where the auditor believes they need to be revised, the auditor will notify those persons ultimately responsible for the overall direction of the entity that action will be taken by the auditor to prevent future reliance on the auditor’s report.
It may not be necessary to revise the financial statements and issue a new auditor’s report when the issue of the financial statements for the following period is imminent, provided appropriate disclosures are to be made in such statements.
Financial assets and liabilities, except loans and advances to customers and balances due to customers, are initially recognized on the trade date, i.e., the date on which the Bank becomes a party to the contractual provisions of the instrument. This includes regular way trades, i.e., purchase or sale of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace. Loans and advances to customers are recognized when funds are transferred to the customer’s account.
Financial assets and liabilities are measured initially at fair value plus, for an item not at Fair Value Through Profit and Loss (FVTPL), transaction costs directly attributable to its acquisition or issue. The fair value of a financial instrument at initial recognition is generally its transaction price [Deloitte].
Financial Statements of the Year Ended 31 December 2021. Deloitte. Retrieved from: https://www.bstdb.org/BSTDB%20Financial%20Statements%20for%202021.pdf
International Federation of Accountants. (2006). Agenda Item 10-C. IAASB Main Agenda (December 2006). New-York: International Federation of Accountants.