FRS 105 and Prior Year Adjustments

Are disclosures required in FRS 105 accounts that include prior year adjustment

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Omitted debtors in PY accoounts are being corrected by way of a prior year adjustment.  The accounts are prepared under FRS 105.  Should a note be included in the accounts explaining the nature and effect of the correction?

Many thanks

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By johngroganjga
20th Jan 2020 17:39

Regardless of what FRS105 requires, don’t you want the accounts to explain the PYA anyway?

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Replying to johngroganjga:
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By Pweb2203
20th Jan 2020 18:30

Was planning on explaining in notes but wanted to know whether this was a voluntary or required disclosure.

Thanks for the reply.

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By Wanderer
20th Jan 2020 19:05

FRS105 wrote:

6B.7 Where the corresponding amount for the immediately preceding reporting period is not comparable with the amount to be shown for the item in question in respect of the reporting period to which the statement of financial position or income statement relates, the former amount may be adjusted, and particulars of the adjustment and the reasons therefor shall be given in a note to the financial statements. (Schedule 3B, paragraph 5)
This is likely to be relevant when there has either been a change in accounting policy or the correction of a material prior period error.

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Replying to Wanderer:
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By Pweb2203
21st Jan 2020 07:27

Thanks for the reference. However 6B is for the Republic of Ireland and not the UK. A similar point is not made in section 6A which suggests disclosure is not required.

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