My first ever prior year adjustment

My first ever prior year adjustment

Didn't find your answer?

I've never had to do a prior year adjustment before and can't quite get my head around it.  In the 2012 accounts I noticed that the wages account contained an PAYE underpayment relating to 2011.  So I debited prior year adjustment by the amount in question, credited wages and explained it in a note to the accounts. The comparative figures for 2011 are still incorrect but should that bother me?

Replies (3)

Please login or register to join the discussion.

avatar
By Carlos_Fandango
29th May 2013 12:57

Unless it's a fundamental error etc. etc....it's not a prior year adjustment.

So just how big is this PAYE underpayment in conjunction with the accounts - material?

Thanks (0)
By johngroganjga
29th May 2013 14:23

Agree with the previous post -  but just in case the size of the adjustment is fundamental to the view given by the accounts the answer to your question about how to effect the adjustment is that you adjust the comparative figures too and put "As restated" at the top of the columns containing the comparatives.

Thanks (0)
By Democratus
30th May 2013 08:49

Fundamental change in accounting policy and Material

Otherwise as John & Carlos stated it shouldn't be adjusted.

Thanks (0)