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Mr "A"
#1 Posted : 14/02/2019
Joined: 2/24/2018(UTC)
Posts: 1

Hi,

If an item on the balance sheet was disposed of in a previous year and had not been removed from the balance sheet would you restate the prior year accounts on this basis or just show the disposal in year and add a note to the accounts. Would you speak to the auditors prior to this aswell. Has anybody had this previously and if so how did you address it. Any advice welcome.
John Everson
#2 Posted : 14/02/2019
Joined: 2/24/2018(UTC)
Posts: 26
Organisation: Dudley Metropolitan Borough Council

Hi,

Account for it as if it was disposed of in the current year.

John
Phill Grover
#3 Posted : 14/02/2019
Joined: 2/24/2018(UTC)
Posts: 7
Organisation: Devon and Somerset Fire and Rescue Service

We had that issue and we dealt with it in the current year too and just gave the auditors the heads up. I guess materiality might play a part but ours was immaterial.
BR
#4 Posted : 14/02/2019
Joined: 2/24/2018(UTC)
Posts: 7

I would run it by the auditors. You don’t want to take an approach they haven’t agreed with, for them to ask you to change things later on. As above, materiality may be the deciding factor.
MW
#5 Posted : 14/02/2019
Joined: 2/24/2018(UTC)
Posts: 77

Was thanked: 4 time(s) in 3 post(s)
The Code has requirements for when you correct a prior period error by restating a prior year.Refers only to correction of material errors. If the error is not material, just put it through current year.
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