Quite often, after the approval of the annual financial statements, the company identifies income or expenses related to the past period, in which case they must be recognized and reflected as profit or loss of past years. It is impossible to make any changes to the approved annual accounts.
Instructions
Step 1
If the profit of the previous periods was revealed in the current period before the moment of approval of the annual reporting, then the corresponding adjustment to the reporting can be made in December last year. The profit of previous years, revealed in the reporting year, according to the "Accounting Plan", is reflected in correspondence with the accounts of settlements on the credit of the subaccount "Other income" related to account No. 91. The profit of previous years, which was revealed in the current reporting period, should be reflected as part of other income on the basis of the Regulations for the maintenance of accounting reports approved by the Ministry of Finance.
Step 2
The amounts of other income should be considered as permanent differences, which are the source of the formation of the tax asset. As a result of the correction of errors, the amounts of recognized other income are excluded from the calculation of the tax base of the current and subsequent reporting periods for income tax. Permanent tax assets should be reflected in the financial statements by an entry on the debit of the account "Calculations for taxes" No. 68 and the credit of the account "Profits and losses" No. 99.
Step 3
If it is not possible to determine the period to which the profit of previous years belongs, it must be included in the composition of non-operating income for tax purposes.
Step 4
At the bottom of the profit and loss statement, data on tax liabilities are indicated, so you need to pay attention to the correctness of filling out the report. Current income tax is reflected in line 150 of the report, it must be equal to the total amount of income tax indicated for the corresponding reporting period in the tax return. The income tax amount on line 150 must not include the added tax amount.
Step 5
In order to avoid distortion of the financial result of the current period, which should equal the profit for the reporting period, the income tax of previous years should be reflected in the income statement in a separate line, after the current income tax.
