How to include yr end adjustment in monthly report

So adj affect prior yr data in the report.When & how to you adjust prior yr data in month end report

Didn't find your answer?

For example, the company's year end is 31st December 2018. You are reporting month 2 (Feburary 2019) in your monthly financial statements and just received the year end adjustments from the auditors. So in the monthly financial statement, you reflect these adjustments in the balance sheet to show the correct closing balance in the prior year and the opening balance in the current year. For the year end adjustments in the profit and loss account, should these be reflected at 31st December? If so, by the time you prepare the monthly financial statement for 31st Decmber 2019, would it be a fair comparison to compare the profit and loss of 31st December 2018 (which includes year end adjustments) with 31st December 2019?

Replies (2)

Please login or register to join the discussion.

RLI
By lionofludesch
02nd Jan 2019 09:37

I'd compare like with like, myself.

But it's up to you.

Thanks (0)
Routemaster image
By tom123
02nd Jan 2019 11:20

When I am reporting January, I would note that December figures are pre-audit.

When audit adjustments are in, I would post them in my software to prior year, and advise when reporting January that December is now post audit.

I have worked in companies where the closing balance sheets never got amended, and the amendments hid in the middle of the following year - but that is not how I like to work.

Thanks (0)