diff --git a/erpnext/accounts/report/share_balance/share_balance.py b/erpnext/accounts/report/share_balance/share_balance.py
index 1d02a996b76..db475a86265 100644
--- a/erpnext/accounts/report/share_balance/share_balance.py
+++ b/erpnext/accounts/report/share_balance/share_balance.py
@@ -15,8 +15,6 @@ def execute(filters=None):
 
 	columns = get_columns(filters)
 
-	filters.get("date")
-
 	data = []
 
 	if not filters.get("shareholder"):
@@ -24,7 +22,7 @@ def execute(filters=None):
 	else:
 		share_type, no_of_shares, rate, amount = 1, 2, 3, 4
 
-		all_shares = get_all_shares(filters.get("shareholder"))
+		all_shares = get_all_shares(filters.get("shareholder"), filters.get("date"))
 		for share_entry in all_shares:
 			row = False
 			for datum in data:
@@ -63,5 +61,28 @@ def get_columns(filters):
 	return columns
 
 
-def get_all_shares(shareholder):
-	return frappe.get_doc("Shareholder", shareholder).share_balance
+def get_all_shares(shareholder, date):
+	"""Share movements for the shareholder up to (and including) `date`, signed by direction:
+	shares received are positive, shares transferred/sold out are negative."""
+	transfers = frappe.get_all(
+		"Share Transfer",
+		filters={"docstatus": 1, "date": ("<=", date)},
+		fields=["share_type", "no_of_shares", "rate", "amount", "from_shareholder", "to_shareholder"],
+		order_by="date",
+	)
+
+	shares = []
+	for transfer in transfers:
+		if transfer.to_shareholder == shareholder:
+			shares.append(transfer)
+		elif transfer.from_shareholder == shareholder:
+			shares.append(
+				frappe._dict(
+					share_type=transfer.share_type,
+					no_of_shares=-transfer.no_of_shares,
+					rate=transfer.rate,
+					amount=-transfer.amount,
+				)
+			)
+
+	return shares
diff --git a/erpnext/accounts/report/share_balance/test_share_balance.py b/erpnext/accounts/report/share_balance/test_share_balance.py
index c118442d239..bb6da5a133d 100644
--- a/erpnext/accounts/report/share_balance/test_share_balance.py
+++ b/erpnext/accounts/report/share_balance/test_share_balance.py
@@ -103,12 +103,8 @@ class TestShareBalanceReport(ERPNextTestSuite):
 		self.assertEqual(other_row[2], 40)
 		self.assertEqual(other_row[4], 400)
 
-	def test_report_reflects_current_balance_regardless_of_date(self):
-		# NOTE: the report reads the Shareholder's current `share_balance` table
-		# and does NOT actually filter by the `date` value (it is required but
-		# unused in the computation). So an as-on date before the issue still
-		# shows the current holding rather than 0. This asserts the real
-		# behavior and flags the missing date-based filtering.
+	def test_as_on_date_before_issue_shows_no_holding(self):
+		# the report is as-on `date`: before any share transfer, the shareholder holds nothing
 		create_share_transfer(
 			transfer_type="Issue",
 			to_shareholder=self.shareholder,
@@ -120,8 +116,36 @@ class TestShareBalanceReport(ERPNextTestSuite):
 			date="2026-06-01",
 		)
 
-		row = self.get_row(date="2020-01-01")  # long before the issue
-		self.assertEqual(row[2], 100)
+		data = execute(
+			frappe._dict({"date": "2026-05-01", "company": COMPANY, "shareholder": self.shareholder})
+		)[1]
+		self.assertEqual(data, [])
+
+	def test_as_on_date_reflects_holding_up_to_that_date(self):
+		# two issues on different dates; an as-on date between them sees only the first
+		create_share_transfer(
+			transfer_type="Issue",
+			to_shareholder=self.shareholder,
+			share_type=self.share_type,
+			from_no=1,
+			to_no=100,
+			no_of_shares=100,
+			rate=10,
+			date="2026-06-01",
+		)
+		create_share_transfer(
+			transfer_type="Issue",
+			to_shareholder=self.shareholder,
+			share_type=self.share_type,
+			from_no=101,
+			to_no=200,
+			no_of_shares=100,
+			rate=20,
+			date="2026-06-10",
+		)
+
+		self.assertEqual(self.get_row(date="2026-06-05")[2], 100)  # only the first issue
+		self.assertEqual(self.get_row(date="2026-06-15")[2], 200)  # both issues
 
 	def get_row(self, date, shareholder=None):
 		filters = frappe._dict(