Journal of Knowledge Management, Economics and Information Technology

The events after the balance date are those events, favorable and unfavorable, that occur between the balance date (the end of the reporting period) and the date at which the annual financial statements are authorized for issue by the executive management of the entity (e.g. Board of Directors).
We identify two types of events: events after the balance date, which lead to financial statements adjusting and events after the balance date, which do not lead to financial statements adjusting.
The process of authorizing the publishing of the financial statements depends on the structure of the reporting entity, on normalization and on procedures followed in preparing and finalizing the financial statements.
Some entities submit the financial statements for approval to their owners after they have been published. In such cases, the financial statements are authorized for publication on the date of publication, not the date they were approved by the owners.
The events after the reporting period include all events up to the date the financial statements are authorized for publication, even if those events occur after the public announcement of profit or of other selected financial information.

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