Financial statements required to be approved by supervisory board
On 17 March 2013, the management of an entity authorises for issue to its supervisory board financial statements for the year to 31 December 2012. The supervisory board consists solely of non-executives and may include representatives of employees and other outside interests. The supervisory board approves the financial statements on 25 March 2013. The financial statements are available to shareholders and others on 1 April 2013. The shareholders approve the financial statements at their annual meeting on 11 May 2013 and the financial statements are filed with a regulatory body on 13 May 2013.
The financial statements are authorised for issue on 17 March 2013 (date of management authorisation for issue to the supervisory board).
An uncommon, but possible, situation that may occur is that the financial statements are changed after they are authorised for issue to the supervisory board. The following example illustrates such a situation.
Example 36.3: Financial statements required to be approved by supervisory board – changes are made by supervisory board
Same facts as in Example 36.2 above, except that the supervisory board reviews the financial statements on 25 March 2013 and proposes changes to certain note disclosures. The management of the entity incorporates the suggested changes and re-authorises those financial statements for issue to the supervisory board on 27 March 2013. The supervisory board then approves the financial statements on 30 March 2013.
The financial statements are authorised for issue on 27 March 2013 (date of management re-authorisation for issue to the supervisory board).
A fourth example illustrates when the entity releases preliminary information, but not complete financial statements, before the date of the authorisation for issue.