Prior year accounts reclassification

Share premium incorrectly classified as loans in prior yr accounts. Current year disclosures?

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Have a new client where the previous accountants had got the share capital amounts wrong and had included £50k of share premium as loans.

I'm used to PYAs where the impact is on retained earnings but first practical example of a classification error.

However, what example disclosure should I include for this reclassification and should the comparatives be restated?

 

thanks in advance

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By johngroganjga
30th Mar 2017 13:16

Yes you restate the comparatives and put "as restated" at the top of the balance sheet column.

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By StartUpAcc
30th Mar 2017 19:05

Thanks John

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