Correction of errors in accounting and reporting. Preparing for the annual report
Make a mistake while composing financial statements everyone can. The main thing is to fix the mistake. And the order of its correction depends on two points: whether the error is significant and in what period it was discovered. pp. 3, 5-11, 14 PBU 22/2010.
A material error is an error that, alone or together with other errors during the same period, could affect economic decisions users accepted by them on the basis of the accounting records of this period and pp. 3, 5-11, 14 PBU 22/2010.
How to make corrections to an account
Error detection period | Correction | |
material error | minor error | |
Until December 31 of the reporting year inclusive | In the month of discovery | |
After the end of the reporting year, but before the date of signing the statements by the head | December 31 of the reporting year | |
After the reporting is signed by the head, but before it is presented to the company's participants | December 31 of the reporting year If the reporting was submitted to other users (for example, to the IFTS), then it must be replaced |
In the month of detection - if the error affected the financial result, the adjustment is reflected in account 91 "Other income and expenses" |
After reporting to participants, but before it is approved by them | December 31 of the reporting year Revised financial statements are sent to users with information about the replacement of the original financial statements and with the rationale for its revision |
|
After approval of the reports by the participants | In the discovery quarter - the results of the adjustment are reflected in account 84 “Retained earnings ( uncovered loss)» | In the month of discovery - the result of the adjustment is reflected in account 91 |
What is the significance of the error
You determine and set the criterion for the materiality of the error yourself by writing it in the accounting policy clause 3 PBU 22/2010; clause 4 PBU 1/2008. It must be justified.
OPTION 1. You can focus on the same rules for determining the materiality of an indicator, which are contained in PBU 9/99 on income and PBU 10/99 on expenses. Recall that it says that income (expense) for a certain type of activity is shown separately in the financial statements if it is 5% or more of total amount income (expenses) for the reporting period clause 18.1 PBU 9/99; clause 21.1 RAS 10/99. By analogy, you can fix in accounting policy that the error is significant if it distorts the indicator for the reporting period by more than 5%.
OPTION 2. It is possible to assess the significance of the error based on the proportion of the balance sheet item, which reflected the error, in the balance sheet currency. For example, the term is incorrectly defined beneficial use OS. Its price does not exceed hundreds of thousands of rubles. And the value of all the assets of the company is in the millions. It is clear that the mistake made will not affect the decision-making by the owners of the company on this accounting. Another thing is if the company bought real estate, but untimely reflected its value on the balance sheet, and the company does not have other fixed assets. Such an error must already be recognized as significant.
OPTION 3. Such a qualitative indicator as the type of activity can be used. For example, your main activity is trade, and your secondary activity is rent. It can be established that errors made in accounting for leases are always insignificant.
OPTION 4. It can be stated that the significance of the error will be assessed for each specific case separately based on the impact of this error on the financial result and property status organizations. That is, there is no single criterion to establish.
OPTION 5. If you are reporting solely for submission to the inspection (the owners are not interested in it), then you can focus on the norm of the Code of Administrative Offenses: if the indicator of any article (line) of accounting is distorted as a result of an error by 10% or more, then this is a gross violation of accounting rules, for which the head faces a fine of 2 thousand to 3 thousand rubles. Art. 15.11 Administrative Code of the Russian Federation That is, it can be established that there will be a significant error that distorts the accounting line indicator by at least 10%.
Example. Determining the type of error made
/ condition / The organization for December 2011 erroneously accrued depreciation in the amount of 200,000 rubles. instead of 250,000 rubles.
At the same time, before the error was detected, the indicators affected by this error were as follows:
- residual value of fixed assets (from the balance sheet) - 900,000 rubles;
- profit from sales (from the income statement) - 1,000,000 rubles;
- profit before tax (from the income statement) - 270,000 rubles;
- net profit (from the income statement) - 216,000 rubles;
- cost of sales (from the income statement) - 700,000 rubles;
- the amount of income tax (from the income statement) - 54,000 rubles.
The same mistake was made in tax accounting - there are no differences.
In the accounting policy, the organization has established that an error is significant that leads to a distortion of any accounting line by at least 10%.
/ solution / Let's see if the error is significant.
STEP 1. Let's calculate the amount of the error: 250,000 rubles. - 200,000 rubles. = 50,000 rubles.
STEP 2. Calculate the percentage of distortion for each line balance sheet and the income statement, which are affected by the reflection of depreciation.
The name of the lines of the balance sheet and income statement | As of 31.12.2011 | ||
Amount before error detection, rub. | Amount after detection of an error, rub. | Distortion percentage, % | |
fixed assets | 900 000 | 850 000 (900,000 rubles -50,000 rubles) |
5,88 ((900,000 rubles - 850,000 rubles) / 850,000 rubles x 100%) |
Cost of sales | 700 000 | 750 000 (700,000 rubles + 50,000 rubles) |
6,67 ((750,000 rubles - 700,000 rubles) / 750,000 rubles x 100%) |
Profit (loss) from sales | 1 000 000 | 950 000 (1,000,000 rubles - 50,000 rubles) |
5,26 ((1,000,000 rubles - 950,000 rubles) / 950,000 rubles x 100%) |
Profit (loss) before tax | 270 000 | 220 000 (270,000 rubles - 50,000 rubles) |
22,73
((270,000 rubles - 220,000 rubles) / 220,000 rubles x 100%) |
Current income tax | 54 000 | 44 000 (220,000 rubles x 20%) |
22,73
((54,000 rubles - 44,000 rubles) / 44,000 rubles x 100%) |
Net profit | 216 000 | 176 000 (220,000 rubles - 44,000 rubles) |
22,73
((216,000 rubles - 176,000 rubles) / 176,000 rubles x 100%) |
STEP 3. Let's compare the maximum percentage of distortion with the criterion of materiality of the error: 22.73% > 10%.
Often, when compiling a balance sheet, an accountant makes mistakes or inaccuracies. Is it necessary and is it possible to file an adjustment to the financial statements? How are changes made? How legislative act is this issue regulated? Let's figure out how the adjustment of financial statements after submission to the tax office is carried out.
In the course of their activities, all enterprises are required to submit accounting reports to the supervisory authorities. The data must be reliable, therefore, the procedure for compiling forms must be approached with the utmost responsibility. However, even experienced accountants are not 100% immune from errors or inaccuracies in financial statements.
This may be due, for example, to the untimely receipt of the primary. In this case, to normalize the financial statements, it is necessary to correct the data. In accordance with paragraph 4 of PBU 22/2010, the detected errors are subject to correction. But not all information needs to be specified. In particular, the adjustment of financial statements is not provided for by those data that are found according to information that is not available to the organization at the date such information is reflected (clause 3 of PBU).
Adjustment of financial statements for the previous period - the nuances of filling
When the financial statements are corrected, the adjustment after reporting date carried out by reflecting the entries in the accounts. According to the rules of PBU, all inaccuracies are divided into significant and not. At the same time, such errors are recognized as significant, which distort the picture of the real state of affairs in the company. The enterprise has the right to determine the materiality criteria independently, taking into account the specifics of the business.
In order to accurately understand whether it is possible to submit an adjustment to the financial statements, it is necessary to understand the features of the presentation of corrections. The current algorithm of actions is described in sec. II PBU. The order differs depending on when exactly the errors are discovered; accounting is approved or not; whether the organization uses a simplified accounting methodology (accounting).
Rules for making adjustments to accounting according to PBU 22/2010:
- For errors in the reporting period detected before its completion, entries on accounts are made in the period (month) of error detection.
- For errors in the reporting period, discovered after its completion, but before the assurance of accounting, records are made in December.
- For errors (significant) of previous periods, discovered after the certification of accounting, but before the submission of documents to the founders/shareholders, the entries are made in December.
- For errors (significant) of previous periods, discovered by me after the provision of accounting reports to the founders/shareholders, but before the official approval of documents, records are made in December with the submission of revised forms to interested parties, including government agencies.
- For errors (significant) of previous periods discovered after the approval of the accounting statements, the adjustment of the financial statements after approval is carried out in the current period, for example, for 2017 in 2018. Correspondence uses account. 84, at the same time a retrospective recalculation of the indicators is made, starting from the period before the error period.
Note! Simplified financial statements can be adjusted without the retrospective method (paragraph 9 of PBU).
How to submit an adjustment for accounting
Suppose the company made mistakes in the preparation of financial statements for 2018. At the same time, is the accounting statement for 2018 corrected? In accordance with clause 10 of the PBU, if clarifications were made according to already approved documents, re-submission of such forms to users is not required. Therefore, the revised documents must be submitted to tax authorities and statistics only if the reports have not yet been approved.
How to submit an adjustment for accounting reports? Documents can be drawn up on paper or in in electronic format. What number of adjustments in the financial statements should be indicated? The paper document does not provide a field for reflecting data on clarifications. If you do not report through the TCS, it is recommended that you submit, along with the revised accounting, transmittal letter with explanations.
If the data is generated electronically, information about the correction number can be entered on the title. Such a number is indicated as "0" when submitting the primary balance, corrective - "1". Similarly, the number of the adjustment is put down in the simplified financial statements - if the clarifications are submitted for the first time, the number "1" is put, the second time - "2", etc.
Adjustment of the annual financial statements
Based on the foregoing, is it possible to file an adjustment to the annual financial statements? According to PBU 22/2010, it turns out that this is necessary only if the documents have not yet been approved. In the case when the accounting has already been approved, no revision of the data, as well as replacement, as well as delivery to interested users are not provided (clause 10).
If the accountant reporting period corrects errors (significant) of previous years, disclosure of data is required according to the norms of Sec. III PBU. This is the provision of explanations in writing. Among the mandatory information, the nature of the detected errors is indicated; amount of adjustments (separately by items and broken down by periods); the opening balance adjustment value of the earliest period. And if the disclosure of data on profit per share is required, relevant information on profit (loss) per share is also submitted.
Conclusion - in this article we figured out how to submit an adjustment to financial statements. Separately, it is considered when the submission of updated data is not required and in what period are entries in the accounting records reflected in the accounts.
The procedure for making corrections to the accounting will depend on the materiality of the error made, as well as on the period of its discovery.
Errors in accounting revealed later than the deadline for reporting can become a real headache even for a very experienced accountant, since they involve additional labor and time costs for the recalculation of financial statements. Consider the question of what errors significantly affect accounting and how to correct them?
Significant or unimportant?
PBU 22/2010 has a division accounting errors into essential and non-essential. A material error is understood to mean an error that (individually or together with others) affects the economic decisions made on the basis of financial statements in a given period.
IN accounting regulations there is no certain threshold, after which the concept of a significant one can be assigned to an error. Identification of errors is an independent process for any taxpayer, and the expression of errors can be determined by them both in absolute numbers and in percentage terms. In any case, the level after which the error becomes material should be prescribed in the accounting policies of the company.
Whenever and how you identify errors in accounting, the Bukhsoft online system for accounting electronic reporting will allow you to quickly resolve the issue and transfer necessary information to supervisory authorities.
Ways to correct significant errors
For significant errors in accounting in 2017, there are a number of requirements for correction. To begin with, let's analyze the methods of correction, they depend on which documents an error was made - directly in the reporting or in primary documentation, on the timing of detection and on the aforementioned materiality of the error.
There are the following ways to correct the primary and registers:
- The corrective method is valid only for paper media. Incorrect data is simply crossed out, while the primary information should be visible under the strikethrough. The correct entry is made next to it. Correction is assured responsible person, for example, the chief accountant, put the date and seal of the company, if available (clause 7, article 9 federal law dated 06.12.2011 No. 402-FZ).
An important point, in a number of documents, this method of correction is unacceptable - this is banking and cash documentation.
- The red storno method is used to correct account entries. If the input was handwritten on paper, then the erroneous wiring is repeated with red paste. The amounts highlighted in red in the transaction are deducted when calculating the totals. The incorrect entry should be canceled and the posting repeated with the correct data. If, however, the information is entered software, as a rule, it is enough to make the same posting, but indicate the amount in it with a minus sign. After making the correct entry. Incorrect posting will be automatically deducted by the program.
- Additional posting - this method of correcting errors is used if the original correspondence of the invoices is correct, but they indicate the wrong amounts, or if the transaction was recorded late. If there is not enough amount in the initial posting, an additional one is made with the remaining amount, if, on the contrary, the amount was overstated, then the additional posting is made with the excess difference and is posted using the red reversal method. In addition, with this method of correction, an explanation is needed, which indicates the reason for the corrections.
The procedure for correcting errors in accounting for 2016
The procedure for making corrections will again depend on the significance of the error made, as well as on the period of its discovery. Namely:
- If an error was identified in the accounting for 2016 in the same 2016, corrections can be made in the month in which the inaccuracy was discovered. If the next calendar year has already begun, but the reporting has not yet been signed and submitted to the regulatory authority, you can make amending entries in December 2016.
- If the error in the accounting statements of 2016 has the status of material, while the statements have already been signed, but not yet approved, corrections are also made in December 2016. In the new submitted reporting, it should be stated that it is replacing the previously submitted one and indicate the reason for the replacement.
Important point: new reporting with the correction of the error, it is submitted to all instances where the previous information was previously sent.
Of course, in the middle of the year there is no need to talk about this method of correcting errors, but this option will also be valid for accounting for 2017.
- If the error is insignificant and was made in 2016, but the accountant discovered it only in 2017, when the financial statements for the previous year had already been approved and submitted, corrections are made to the accounting records in the month the error was discovered in 2017. Losses incurred or, on the contrary, profits received due to this error should be transferred to account 91.
- If a significant error in the accounting for 2016 was identified after the approval and submission of information to the supervisory authorities in 2017, then corrections should be made to the accounting accounts as early as 2017. In postings, account 84 is used.
Significant errors of previous reporting periods, corrected in the current period, in without fail indicated in explanatory note to the 2017 annual financial statements.
It should be noted that the Ministry of Finance, in its letter dated 01.22.2016 No. 07-01-09 / 2235, indicated that companies themselves can develop an algorithm for correcting errors in accounting, guided by the provisions of the current Russian legislation. Any chosen order must be fixed by the provisions in the accounting policy of the organization.
If an organization, as a result of non-application of regulatory legal acts on accounting, incorrectly reflects (non-reflection) the facts of economic life in accounting and financial statements, then this is an error subject to correction in the manner established by the Accounting Regulation "Correction of errors in accounting and reporting" (PBU 22/2010), approved by the Order of the Ministry of Finance of Russia dated June 28, 2010 N 63n (clauses 2, 4 PBU 22/2010).
An error is recognized as significant if, individually or in combination with other errors for the same, it can affect the economic decisions of users made on the basis of the financial statements compiled for this reporting period (clause 3 PBU 22/2010).
Reporting users are potential investors and counterparties (customers, lessors and creditors) who need to know whether to provide resources to the organization. Based on the reports, they decide:
whether to buy securities issued by the organization (whether it will be able to make a profit that will be distributed as dividends, will it pay off its bill);
whether to entrust it with the execution of orders, whether to lease property, whether to provide loans (whether the organization will be able to fulfill its contractual obligations).
Thus, significant errors are significant distortions in reporting indicators, due to which the user may draw an incorrect conclusion about the organization's ability to make a profit and fulfill obligations on time.
Significance of the error
RAS 22/2010 does not establish specific materiality criteria.
Therefore, the organization determines the materiality of the error independently, based on both the size and nature of the relevant article (articles) of the financial statements (clause 3 PBU 22/2010).
At the same time, it should be borne in mind that an indicator can be considered significant if its non-disclosure affects the economic decisions of users made on the basis of financial statements.
Does it this indicator significant, depends on the assessment of the indicator, its nature, the specific circumstances of occurrence.
Thus, the materiality of the indicator in the formation of financial statements is determined by a combination of qualitative and quantitative factors.
The level of materiality of the error determined by the Organization must be fixed in the accounting policy.
Materiality level as a percentage of the value of the reporting line
As a rule, the materiality level is set as a percentage of the value of the reporting line. For example, errors that distort the value of any reporting line by 5% or more can be recognized as material.
Example. Determining the materiality of an error
The organization mistakenly wrote off the cost of unsold goods in the amount of 100 rubles.
The same mistake was made in tax accounting.
According to the accounting policy, errors that distort the value of any reporting line by 5% or more are considered significant.
Namelines |
Meaning |
Meaning |
String value corruptionpercentage reporting (%) |
1210 "Stocks" |
0.2 (((50,100 rubles - 50,000 rubles) / 50,100 rubles) x 100%) |
||
2120 "Cost of sales" |
0.5 (((20,000 RUB - 19,900 RUB) / 19,900 RUB) x 100%) |
||
2200 "Profit (loss) from sales" |
1.96 (((5,100 RUB - 5,000 RUB) / 5,100 RUB) x 100%) |
||
2300 "Profit (loss) before tax" |
9.09 (((1,100 RUB - 1,000 RUB) / 1,100 RUB) x 100%) |
||
2410 "Current |
9.09 (((220 RUB - 200 RUB) / 220 RUB) x 100%) |
||
2400 "Net profit (loss)" |
9.09 (((880 RUB - 800 RUB) / 880 RUB) x 100%) |
The percentage of distortion of the value of lines 2300 "Profit (loss) before tax", 2410 "Current" and 2400 "Net profit (loss)" of the report on financial results amounted to 9.09%, that is, more than 5%. The error is significant.
Materiality level based on the average value of reporting indicators
Example. Calculation of the error materiality level in a fixed amount
According to the accounting policy, the error materiality level is calculated as 5% of the average value of five reporting indicators for the reporting year in which the error was made. The values of these indicators for 2016 were:
1. Balance:
On line 1150 "Fixed assets" - 5 million rubles;
By line 1230 " Receivables"- 3 million rubles;
On line 1370 "Retained earnings (uncovered loss)" - 2 million rubles;
2. Statement of financial results:
On line 2110 "Revenue" - 24 million rubles;
On line 2400 "Net profit (loss)" - 1 million rubles.
Total 35 million rubles. (5 million rubles + 3 million rubles + 2 million rubles + 24 million rubles + 1 million rubles).
The materiality level for an error made in the reporting for 2015 is 350 thousand rubles. (35 million rubles / 5 x 5%).
Errors within 350 thousand rubles. are considered insignificant, and errors exceeding 350 thousand rubles are considered significant.
The procedure for correcting significant errors
The procedure for correcting significant errors depends on the period when it was identified - before the approval of the reporting by the participants of the organization or after (section II PBU 22/2010).
Correction of an error is made out by an accounting statement, in which it is necessary to indicate:
when and what mistake was made;
which lines of reporting and in what amount the error affected and why it was recognized as significant;
when the error is discovered;
what postings corrected the error;
which reporting lines are adjusted, including retrospectively.
Errors made in the reporting year and identified before the signing of the reporting by the head of the organization
In accounting, any errors (both significant and insignificant) made in the reporting year and identified before the signing of the reporting by the head of the organization are corrected:
if they were detected before December 31 of the reporting year - by entries as of the date the error was detected, that is, in the month of the reporting year in which the error was detected (clause 5 PBU 22/2010);
if they are identified on December 31 of the reporting year or later - by entries as of December 31 of the reporting year (clause 6 of PBU 22/2010).
Thus, all errors of the current reporting period identified before the date of signing by the head of the organization of the annual financial statements for this year are taken into account when compiling the current reporting of this year.
There are several ways to correct data. accounting.
Corrections can be made by write-back, redemption, or by adding any amounts that were not previously taken into account.
To fix the error, you should:
1) draw up an accounting statement, which indicates: when and what error was made, when the error was detected, what postings corrected;
2) reverse incorrect postings;
3) make correct notes.
Example
In December 2016, the following significant error was identified: for the period from January to November 2016, depreciation in the amount of 100,000 rubles was not charged on the fixed asset.
In this case, in December 2016 - in the month of detection of an error - additional depreciation amounts are charged, which is reflected in accounting entries on the credit of the account "Depreciation of fixed assets" in correspondence with the accounts for accounting for production costs (clause 5 PBU 22/2010, Instructions for using the Chart of Accounts):
Example
In March 2016, the organization accrued for the first quarter of 2016 in the wrong amount - 60,000 rubles. instead of 40,000 rubles.
This error was discovered in February 2017 before signing the financial statements for 2016.
Errors identified at the end of the reporting year after signing the financial statements
If an error is detected after the signing of the reporting, then it is corrected depending on the date of its detection.
Error of the previous reporting year, detected after the date of signing the financial statements for this year, but before the date of submission of statements to its users
According to paragraph 7 of PBU 22/2010, a significant error of the previous reporting year, identified after the date of signing the financial statements for this year, but before the date of submission of such statements to shareholders joint-stock company, participants of a limited liability company, public authority, body local government or to another body authorized to exercise the rights of the owner, etc., is corrected by entries in the relevant accounting accounts for December of the reporting year (the year for which the annual financial statements are prepared).
If the specified financial statements were presented to any other users, then they must be replaced with statements in which the identified material error has been corrected (revised financial statements).
The fact that users are presented with a corrected form can be reflected in title page. For this, the column "Adjustment number" is provided. For example, if the reporting is corrected for the first time, then “1” is reflected in this column.
Example
The bonuses to the workers of the production shop in 2016 were accrued in the correct amount, but with the wrong posting - D 26 " General running costs"- K 70 "Settlements with personnel for wages" instead of posting D 20 "Main production" - K 70.
As a result, the amount of bonuses is incorrectly reflected in the statement of financial results for 2016 (instead of line 2120 "Cost of sales" in line 2220 "Administrative expenses").
The error was discovered in March 2017 after reporting was submitted to the organization's members for approval.
To correct the error on 12/31/2016, the following entries were made:
In the corrected version of the statement of financial results, signed by the head and presented to the participants of the organization, the amounts of bonuses are reflected in line 2120 "Cost of sales".
Error of the previous reporting year, revealed after the reporting was submitted to its users, but before the date of its approval by the owners
According to paragraph 8 of PBU 22/2010, a significant error of the previous reporting year, identified after the presentation of financial statements for this year to shareholders of a joint-stock company, participants in a limited liability company, a state authority, a local government body or other body authorized to exercise the rights of the owner, etc. .p., but before the date of approval of such reporting in accordance with the legislation Russian Federation order (for example, at a general meeting of shareholders), is also corrected by entries in the relevant accounting accounts for December of the reporting year (the year for which the annual financial statements are prepared).
At the same time, the revised financial statements disclose information that these financial statements replace the originally presented financial statements, as well as the grounds for compiling the revised financial statements.
The revised financial statements are submitted to all addresses to which the original financial statements were submitted.
The procedure for correcting an error of the previous reporting year, identified after the approval of the financial statements for this year
According to paragraph 9 of PBU 22/2010, a significant error of the previous reporting year, identified after the approval of the financial statements for this year, is corrected:
1) entries on the relevant accounting accounts in the current reporting period. In this case, the offsetting account in the entries is the account of retained earnings (uncovered loss), that is, the account “Retained earnings (uncovered loss);
2) by recalculating the comparative indicators of the financial statements for the reporting periods reflected in the financial statements of the organization for the current reporting year, except when it is impossible to establish a connection between this error and a specific period or it is impossible to determine the impact of this error on a cumulative total in relation to all previous reporting periods.
The recalculation of the comparative indicators of the financial statements is carried out by correcting the indicators of the financial statements, as if the error of the previous reporting period had never been made (retrospective recalculation).
Retrospective recalculation is made in relation to comparative indicators starting from the previous reporting period presented in the financial statements for the current reporting year in which the corresponding error was made.
According to clause 10 of PBU 22/2010, in the event that a significant error of the previous reporting year, identified after the approval of the financial statements, is corrected, the approved financial statements for previous reporting periods are not subject to revision, replacement and re-submission to users of the financial statements.
In accordance with paragraph 11 of PBU 22/2010, if a material error was made before the beginning of the earliest of the previous reporting periods presented in the financial statements for the current reporting year, the opening balances for the corresponding items of assets, liabilities and capital at the beginning of the earliest of the presented reporting periods (usually three years).
According to clause 12 of PBU 22/2010, if it is impossible to determine the impact of a material error on one or more previous reporting periods presented in the financial statements, the organization must adjust the opening balance for the relevant items of assets, liabilities and equity at the beginning of the earliest of the periods, recalculation for which is possible.
It should be noted that the impact of a material error on the previous reporting period cannot be determined if complex and (or) numerous calculations are required, during which it is impossible to isolate information that indicates the circumstances that existed at the date of the error, or it is necessary to use information obtained after the date of approval of the accounting reporting for such a previous reporting period (clause 13 PBU 22/2010).
Simplified error correction procedure
Organizations that have the right to apply simplified methods of accounting, including simplified accounting (financial) reporting (for example, small businesses), may correct a material error of the previous reporting year, identified after the approval of the financial statements for this year, in the manner prescribed by paragraph 14 of this Provisions for minor errors, without retrospective restatement, as follows:
An error of the previous reporting year, which is not significant, detected after the date of signing the financial statements for this year, is corrected by entries in the corresponding accounting accounts in the month of the reporting year in which the error was discovered. Profit or loss resulting from the correction of this error is reflected in other income or expenses of the current reporting period on account 91 “Other income and expenses”.
Example
In January 2017, after the reformation of the balance sheet, signing and submission of financial statements to users, an error was discovered that was made in September 2016.
Accounting statements have not yet been approved by the owners of the organization.
As a result of the error, the amount of office rental expenses was underestimated. The amount of the error was 500,000 rubles. In addition, VAT was not reflected from rent in the amount of 90,000 rubles.
This error is considered significant.
Debit account 26 “General business expenses”, Credit account -500,000 rubles. - additionally accrued the amount of rent for September 2015;
Account debit - 500,000 rubles. - the amount of previously unaccounted rent for September 2015 was written off; "Profit and Loss" - 500,000 rubles. - Adjusted the amount of net profit.
In the form "Report on financial results" for 2016, the value in line 2120 "Cost of sales" must be increased by 500,000 rubles. and make changes in other indicators of the form, for example, in lines 2100 " Gross profit(loss)”, 2220 “Profit (loss) from sales”, etc.
Example
Let's use the conditions of the previous example.
At the same time, suppose that the error was detected in June 2017 after the signing, submission and approval of the reporting.
In this case, in June 2017, the error should be corrected as follows:
Debit of account 84 "Retained earnings (uncovered loss)", Credit of account 60 "Settlements with suppliers and contractors" -500,000 rubles. - additionally accrued the amount of rent for September 2016;
Account debit, Account credit 60 “Settlements with suppliers and contractors” -90,000 rubles. – “input” VAT on rent for September 2016 was taken into account;
The debit of the account “Settlements with the budget for taxes and fees”, the subaccount “Calculations for VAT”, Credit of account 19 “Value added tax on acquired valuables” -90,000 rubles. – accepted for VAT deduction from the budget on rent for September 2016;
In this case, the reporting for 2016 is not adjusted.
The indicator of net profit for 2017 (retrospective recalculation) will be recalculated (changed) in line 1370 “Retained earnings (uncovered loss) of the balance sheet for 2017 and in line 2400 “Net profit (loss)” of the Statement of financial results for 2017.
Information regarding material errors in the explanatory note
In the explanatory note to the annual financial statements, the organization is obliged to disclose the following information in relation to material errors of previous reporting periods corrected in the reporting period:
1) the nature of the error;
2) the amount of the adjustment for each article of the financial statements - for each previous reporting period to the extent that it is practically feasible;
3) the amount of the adjustment for basic and diluted earnings (loss) per share (if the entity is required to disclose earnings per share);
4) the amount of adjustment of the opening balance of the earliest of the reporting periods presented (clause 15 PBU 22/2010).
If it is impossible to determine the impact of a material error on one or more previous reporting periods presented in the financial statements, then the explanatory note to the annual financial statements discloses the reasons for this, and also provides a description of the method for reflecting the correction of a material error in the financial statements of the organization and indicates the period starting from which corrections were made (clause 16 PBU 22/2010).
Is it possible to correct the balance (submit balance adjustments)?
Answer
You can submit a corrective balance sheet if errors are identified before the date of approval of the annual financial statements.
When correcting errors in reporting, you need to take into account a significant error and not, and when it is discovered before or after the date of approval.
Significant errors:
Major error detected after the signing of the financial statements, but before the date of their submission to external users (for example, the founders of an organization, a public authority, etc.), correct it in December of the year for which the financial statements were prepared (i.e., in the same order as the errors discovered before signing the financial statements).
A material error can be corrected if it was discovered after the submission of signed statements to the owners of the organization or other external users, but before the date of its approval. At the same time, after correcting the error, it is necessary to revise the previously compiled statements, re-sign them and submit them to all users to whom they were presented earlier.
There was a significant error discovered after approval annual accounts, then correct it in the reporting period in which it was found. Do not make any adjustments to approved reports. Changes reflect in the current reporting.
Insignificant errors made in previous reporting periods, in all listed cases, correct in the reporting period when they were discovered
Regarding the date of approval of the annual financial statements, the following can be noted.
Approval of the annual financial statements of a joint-stock company, as well as a limited liability company, is exclusively within the competence of the general meeting of shareholders (participants).
The General Meeting of Shareholders, at which the annual financial statements are approved, is held no earlier than two months and no later than six months after the end of fiscal year. The general meeting of the company's participants, at which the annual results of the company's activities are approved, is held no earlier than two months and no later than four months after the end of the financial year.
The rationale for this position is given below in the materials of the Glavbukh System for commercial organizations
Errors identified in accounting and financial statements must be corrected ().
Causes of errors
Errors may be due to:
– incorrect application of accounting legislation;
- incorrect application of the accounting policy of the organization;
– inaccuracies in calculations;
– incorrect classification (assessment) of facts economic activity organizations;
- unfair actions of officials.
Inaccuracies (omissions) in the reflection of a business transaction identified upon receipt of new information about this transaction (which was not available at the time of its reflection (non-reflection) in accounting (reporting) are not errors).
The error was discovered before the end of the year
If an error was detected before the end of the year in which it was committed, then make corrective entries in the month of the reporting period when the error was discovered ().
On May 17, 2013, the accountant of Alpha CJSC discovered that in the first quarter of 2013, advertising expenses were erroneously written off in the accounting in the amount of 25,000 rubles. (without VAT). Whereas the actual amount of expenses amounted to 23,000 rubles. (without VAT).
The mistake was made and revealed within one year. Therefore, it must be corrected on the same accounting accounts in the month when it was discovered. In May, the accountant made corrections based on:
Debit 44 Credit 60
- 25,000 rubles. - canceled the debt to the supplier;
Debit 90-2 Credit 44
- 25,000 rubles. - canceled expenses for ordinary species activities;
Debit 44 Credit 60
- 23,000 rubles. - reflects the debt to the supplier;
Debit 90-2 Credit 44
- 23,000 rubles. - written off as expenses for ordinary activities advertising expenses.
On June 22, 2013, the accountant of Alfa CJSC discovered that in the first quarter of 2013, the accrued transport tax was incorrectly reflected in the accounting. Instead of 210,000 rubles. 180,000 rubles were reflected. IN tax reporting there is no error.
The error was found before the end of the year, so it was reflected in the expenses for ordinary activities of the reporting period. Corrections to accounting were made on the basis of:
Debit 20 Credit 68 sub-account "Transport tax settlements"
- 30,000 rubles. - additional accrual is reflected transport tax for the first quarter of 2013.
The error was discovered after the end of the year, but before the signing of the financial statements
If the error was discovered after the end of the year, but before the date of signing the reporting, then corrective entries must be made in December of the year for which the reporting is being prepared ().
An error was discovered after signing the reporting
The procedure for correcting errors discovered after signing the financial statements depends on whether the mistake was made or not.
The organization has the right to determine the threshold of materiality of the error independently, ( , ). For example, in the accounting policy, you can prescribe the threshold of materiality as follows: “A significant error is recognized, the ratio of the amount of which to the total of the relevant data for the reporting year is at least 5 percent.”*
If a significant error is discovered after signing the financial statements, but before the date of its submission to external users (for example, the founders of the organization, government authority, etc.), correct it in December of the year for which the financial statements were prepared (i.e., in the same manner , which are the errors detected before the signing of the reporting).
In a similar manner, a significant error can be corrected if it was discovered after the submission of signed statements to the owners of the organization or other external users, but before the date of its approval. At the same time, after correcting the error, it is necessary to revise the previously compiled statements, re-sign them and submit them to all users to whom they were presented earlier. In the revised financial statements, it is necessary to indicate that this reporting replaces the one originally submitted, as well as give the reason for reissuing.*
This procedure follows from paragraphs, PBU 22/2010.
If a significant error was discovered after the approval of the annual accounts, then correct it in the reporting period in which it was found. Do not make any adjustments to approved reports. Changes reflect in the current reporting. Such rules are established by the Regulations on Accounting and Reporting and PBU 22/2010. *
Minor errors made in previous reporting periods, in all listed cases, correct in the reporting period when they were discovered ().*
In accounting, the procedure for reflecting errors discovered after signing the statements depends on what kind of mistake was made - or.
Correct significant errors in the following order.
Errors discovered prior to the approval of the annual accounts, using the appropriate cost, income, settlement, etc. accounts.
If significant errors are identified after the approval of the annual financial statements using "Retained earnings (uncovered loss)" ().
If, as a result of an error, the accountant did not reflect any income (he overestimated the amount of expenses) in accounting and tax accounting, make the following entries:
Debit 62 (76, 02...) Credit 84
- erroneously unreported income (overreported expense) of the previous year was revealed;
Debit 84 Credit 68 sub-account "Income Tax"
- additionally accrued income tax of the previous year according to the revised declaration.
If, as a result of an error, the accountant did not reflect any expense (he overestimated the amount of income) in accounting and tax accounting, make an entry:
Debit 84 Credit 60 (76, 02...)
- an erroneously unreported expense (overreported income) of the previous year was identified.
Further postings depend on how this one is.
1. If the accountant submits an updated tax return for the period when the error was made (i.e., for the last year), then make a note:
Debit 68 subaccount "Income Tax" Credit 84
– the income tax of the previous year was reduced according to the revised declaration.
2. If an accountant corrects an error in tax accounting for the current period, then expenses (reduced income) of the current year will be increased in tax accounting. In accounting, make a posting:
Debit 68 subaccount "Income Tax" Credit 99
- reflected constant tax asset due to the fact that the tax accounting of the current period recognized expenses (reduced income) relating to the previous year.
3. If the accountant decided not to correct the error in tax accounting, no additional entries are made. Since in accounting, the correction of significant errors does not affect the accounts of the financial results of the current period.
Correct insignificant errors in accounting using “Other income and expenses”. It does not matter whether the reporting was approved by the time the error was discovered or not. This conclusion follows from PBU 22/2010.
If, as a result of an insignificant error, the accountant did not reflect any income (he overestimated the amount of the expense), make a posting:
Debit 60 (62, 76, 02...) Credit 91-1
- erroneously unreported income (overreported expense) was detected.
If, as a result of an insignificant error, the accountant did not reflect any expense (he overestimated the amount of income), make a note:
Debit 91-2 Credit 02 (10, 41, 60, 62, 76...)
- an erroneously unreported expense (overreported income) was identified.
Mistake made by small business
An example of a correction in accounting and reporting of a significant error (overreported expense) by a small business. The mistake was made last year, the reporting for which was signed and approved
ZAO Alfa is a small business. In March 2013, after the approval of the financial statements for 2012, Alfa's accountant revealed an error made in the first quarter of 2012.
The accounting reflected the cost of work performed under the act received from the contractor in March 2012, in the amount of 50,000 rubles. (without VAT). In fact, the act indicates the amount of 40,000 rubles. (without VAT). The work performed was paid to the contractor in full (40,000 rubles) in March 2012. Thus, as of December 31, 2012, Alpha had a accounts payable in the amount of excessively written off expenses - 10,000 rubles.
Alpha's accounting policy stipulates that material errors of previous years, identified after the approval of financial statements, are corrected without retrospective restatement.
Excess write-offs accountant reflected in the accounting as follows.
March 2013:
Debit 60 Credit 91-1
- 10,000 rubles. - reflects the cost of the contractor's work, erroneously attributed to expenses in the 1st quarter of 2010.
Since the reporting for 2012 has already been approved, corrections to it.
The correction of the error is reflected in the accounting of the current year, but is not reflected in the tax accounting. Since corrections in tax accounting are made in the period of the error. In this regard, Alfa's accountant for income tax for 2012.
PBU 18/02 "Alpha" does not apply, therefore, the differences arising from the discrepancy between accounting and tax accounting data are not reflected in accounting accounts.
Responsibility
Attention: an error in the financial statements is an offense (,), for which tax and administrative liability is provided.
Incorrect reflection in the accounting of assets and business transactions recognized as a gross violation of the rules for keeping records of income and expenses. Responsibility for it is tax code RF.
If such a violation was committed during one tax period, the inspection has the right to fine the organization in the amount of 10,000 rubles. If a violation is found in different tax periods, the amount of the fine will increase to 30,000 rubles.
Violation leading to understatement tax base, will entail a fine of 20 percent of the amount of each unpaid tax, but not less than 40,000 rubles.
However, the leader or Chief Accountant can be completely exempted from administrative liability in the following cases:
- if the organization has submitted an amended tax return (calculation) and paid additional taxes and fees, as well as penalties;
- if the organization corrected errors in the statements (for example, filed revised financial statements) before they were approved.
Elena Popova, state councilor tax service RF I rank
2. FEDERAL LAW dated December 26, 1995 No. 208-FZ
11) approval annual reports, annual financial statements, including profit and loss statements (profit and loss accounts) of the company, as well as the distribution of profits (including the payment (declaration) of dividends, with the exception of profit distributed as dividends based on the results of the first quarter, half a year , nine months of the financial year) and losses of the company based on the results of the financial year;*
Article 47. General Meeting of Shareholders
annual general meeting shareholders is carried out within the time limits established by the charter of the company, but not earlier than two months and not later than six months after the end of the financial year. At the annual general meeting of shareholders, issues on the election of the board of directors (supervisory board) of the company, the audit commission (auditor) of the company, the approval of the company's auditor, the issues provided for by subparagraph 11 of paragraph 1 of Article 48 of this Federal Law, and other issues referred to to the competence of the general meeting of shareholders. The general meetings of shareholders held in addition to the annual general meetings are extraordinary.*
3. FEDERAL LAW dated February 8, 1998 No. 14-FZ
Article 33
6) approval of annual reports and annual balance sheets;
Article 34
The next general meeting of the company's participants is held within the time limits specified by the company's charter, but at least once a year. The next general meeting of the company's participants is convened by the company's executive body. The company's charter must determine the date for holding the next general meeting of the company's participants, at which the annual results of the company's activities are approved. The specified general meeting of the company's participants must be held no earlier than two months and no later than four months after the end of the financial year.
*So highlighted part of the material that will help you make the right decision