Considerations on the post balance sheets events

Author:PhD. Florentin CALOIAN

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Keywords:subsequent events, financial statements, contingent liabilities, audit report

Abstract:
The post balance sheets events are treated from the regulatory point of view by two standards: IAS10 „Post balance sheet events “ and ISA560 „Subsequent events “. The first regulation divides this kind of events in two categories: events which existed at the balance sheet date and events which occurred after the balance sheet date. The second regulation establishes the stages a financial auditor should follow in relation with these events, these being classified in three categories: events discovered by the date of the report, events discovered after the report is developed, but before publishing the financial statements and events discovered after publishing the financial statements.\r\n\r\nBased on the nature of the events after the balance sheet date, the financial auditor reviews his/her opinion expressed in the audit report. The most important issue of these events is represented by the moment when the auditor acknowledges such events. In this direction we can see two categories of events based on the opinion which is influenced: events known by the auditor before drafting and presenting the audit report and events which are known by the auditor after drafting and presenting the audit report to the management of the audited company, state bodies and other users of the audited financial statements. \r\n\r\nThe first category of events influences the audit report and the opinions issued in this meaning that the auditor can change the content before publishing it. \r\n\r\nThe second category of events create more complex situation, this meaning that the auditor can not change the audit report published, but will make all the diligences to inform the users of the financial statements on the new information obtained after publishing this report.\r\n \r\n

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