Balance sheet is a report of an enterprise, organization, firm for a certain period of time to become a month, quarter or year. In addition, it is the main document in which the accountant displays the financial condition of the entire enterprise at the end of the reporting period. For some reason, errors in the balance sheet may come to light, but the young specialist does not know how to make changes to the balance.
Instructions
Step 1
Errors in accounting are not inaccuracies or omissions in the reflection of certain factors of the financial activity of the enterprise, if they are revealed as a result of the receipt of new information by the accountant after the compilation of the report.
Step 2
Find your mistake and make the appropriate changes by doing the following steps. Correct the entries for the relevant accounts in the month of the reporting year where you identified the error, if it is identified before the end of that year.
Step 3
Correct the entries on the corresponding accounts for December of the reporting year (the reporting year is the year for which the report is drawn up), if the error was identified after the end of this year, but before the date of signing the financial statements themselves.
Step 4
Submit the revised financial statements for all necessary addresses where the incorrect option was previously submitted (to shareholders or members of the company, public authorities, local governments, etc.)
Step 5
If you have identified a material error after the approval of the financial statements for the year, correct it with the appropriate entries for certain accounts you require in the current reporting period by all recalculations for the reporting periods that are reflected in the accounting for the current reporting period. Exceptions here are those cases when it is impossible to establish a link between an error and a specific period, or it is impossible to determine the effect of the error on the cumulative total of all previous periods. A retrospective restatement is made starting from the previous reporting period, in which the corresponding error was made.
Step 6
Find more detailed information in the Accounting Regulations, in particular in the paragraph "Correction of errors in accounting and reporting PBU 22/10".
