UK P&L Query

[Fay40]

Hi all,

I'm hoping you can help me.

I have come across a posting that was made on the P&L back in 2014. It was a credit to the P&L that shouldn't have happened. This has now been reversed in 2016 to fix the problem. I wasn't working for the company back in 2014 so I'm unsure why this has only just been highlighted now.

Can amendments for mistakes from 2 years ago be rectified on the current P&L. The credit relates to a client paying an invoice. Instead of the credit going to the client project it went to the business overhead.

Thanks in advance

 

[Fidget]

There are instances where errors need corrected retrospectively, starting in the year that they happened and fed through any subsequent accounting periods to the present. But by the sounds of it, this is not a material/significant error, and if that's the case, then it's fine to make the adjustment in the current year's accounts.