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متابعة

What is a prior period adjustment?

How is it treated in the financial statements

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تم إضافة السؤال من قبل sasibhooshan pournami , Finance Manager , COMAT INDUSTRIES LLC
تاريخ النشر: 2013/11/08
Rahul Sharma
من قبل Rahul Sharma , Project Head & Finance Manager , Rays Power Private Limited

Prior period adjustemsts are the transaction which came into notice after preparation of financial statements hence they are adjusted in next years financial statements.

Sreeraj V S
من قبل Sreeraj V S , Accountant , Airblast Middle East LLC

Prior period adjustments are changes made to revenues and expenses that are applicable to the financial statement of a previous period. These adjustments are normally made to correct mistakes or collection of unsettled bills. Generally, if you have closed and filed tax returns for a period, any Prior Period adjustments are recorded in the current year as "Non-Operating Income/Expenses

mukkur srinivasan varadhan
من قبل mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Prior period adjustments are the revenue items pertaining to previous periods arising due to errors and ommissions in the proir periods.Adjustments due to under/over estimations will not amount to errors/ommissions.