What events after the end of the financial year should be reported in the financial statements?

Report any events that occur after the end of the financial year if they are material to your company’s financial position. An event is material if it may significantly affect the information in the financial statements or how it is interpreted.

If an event shows that the situation at the end of the financial year was different from what was estimated in the accounting records, it may also affect the figures in the financial statements. Other material events may need to be disclosed in the notes to the financial statements.
 

Report at least the following events

Please inform the accountant preparing your financial statements if, after the end of the financial year:

• a major customer is unable to pay an invoice or is declared bankrupt
• you receive information about a dispute, claim for damages or other liability related to the financial year that has ended
• company assets suffer significant damage, such as fire, theft or breakage
• your company makes a significant financing arrangement, takes out a substantial loan or receives a major investment
• your company sells or acquires assets that are significant to its business operations
• you decide to close down, suspend or substantially change your company’s operations
• another exceptional event occurs that clearly affects your company’s finances, operations or ability to continue operating.
   

How to report an event

1. Report the event as soon as you become aware of it, even if the financial statements are already being prepared.
2. Describe the event as clearly as possible:
   • what happened
   • when it happened
   • how it is related to your company
   • the estimated financial impact, if known.
3. Include any relevant receipts and supporting documents, such as agreements, decisions, correspondence or documents from an insurance company.
    

Please also note

Ordinary purchases, sales and expenses that arise after the end of the financial year generally belong to the accounting records of the following financial year. They do not automatically affect the financial statements for the financial year that has ended.

The key question is whether the new information relates to circumstances that already existed at the end of the financial year, or whether the event is otherwise significant enough to be included in the financial statements.
 

If you need help

If you are unsure whether an event is material, please let us know rather than leaving it unreported. Send us a description of the event and any relevant attachments at osakeyhtio@ukko.fi.