Prior year adjustments in accounting books and financial statements
Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2011, Vol 2011, Issue 60
Abstract
According to the Accounting Act, the accounting books shall be kept true, fault-less, verifiable, updated, whereas the financial statements shall honestly and clearly present the financial position, performance and financial result of an entity. This requirement means, among others, that every occurrence concerning a certain reporting period should be entered into the accounting books of this period, and every material information should be included in the financial statements. However, in the accounting practice, various errors occur in the recording of transactions that are not always immediately detected. The aim of the article is to show how – in the light of the Accounting Act and In-ternational Financial Reporting Standards – to reflect the discovered errors of the previous years in the accounting books and the financial statements of an entity. The article starts with general description and classification of the errors of the previous years. Next, it presents methods of treatment of such errors in the ac-counting books and in the financial statements depending on their significance and time of detection – before or after the approval of the financial statements for a given financial year. Particular topics are illustrated by practical examples.
Authors and Affiliations
Dorota Mikulska
Keywords
Related Articles
- EP ID EP53568
- DOI -
- Views 113
- Downloads 0
Lithuanian accounting development phases and tendencies
The evolution of Lithuanian accounting has a long history and is rather complicated. It was influenced by different countries, especially by Tsarist Russia, Germany, France, Poland and the Soviet Union. Differ-ent factor...
Voluntary adoption of IFRS by listed companies in selected Western European countries
The purpose of the article is to identify the extent of voluntary use of IFRS by sectors in selectedWestern European countries. The article presents both advantages and disadvantages of IFRS application. It provides a r...
Management accounting system in healthcare institutions in Poland
The article presents the results of surveys conducted in 150 healthcare institu-tions in Poland in 2010. The research examined evaluation of the usefulness of the accounting information system, among others in management...
Introduction of IFRS 16 and its expected impact on the financial position of companies listed on the Warsaw Stock Exchange
The purpose of this paper is to answer the question about the expected changes in average EBITDA, financial leverage and total assets value that will take place after the introduction of IFRS 16, and wheth- er these chan...
40 lat oddziaływania „Zeszytów Teoretycznych Rachunkowości” na rozwój rachunkowości w Polsce
W 2016 r. czasopismo naukowe „Zeszyty Teoretyczne Rachunkowości” (ZTR) obchodziło swoje 40-lecie. Celem artykułu jest przedstawienie rozwoju ZTR w latach 1977–2016 i jego oddziaływania na naukę rachunkowości w Polsce. Do...