I don\u2019t know why accountants think that if the year is closed, it\u2019s closed. It has happened quite often that I have to explain that if the information becomes available after the year-end but before you\u2019ve submitted the Annual Report, this information is to be included within if it\u2019s relating to the previous year.<\/p>\n
It\u2019s not only to be included within the report, but also in the financial statements if need be \u2013 depending on the information that become available.\u00a0<\/p>\n
For an example, if it becomes apparent that some of the receivables are not being collected after all and the clients are even close to bankruptcy, the receivables need to be written down. That\u2019s you needing to change the financial statements.<\/p>\n
However, if at the balance sheet date you had a legal case pending where you were not sure if you had to pay something and yet you accounted for a provision in case you had to and after the date it becomes apparent you have to pay, you should disclose this information within the Annual Report. You cannot say that it\u2019s unsure whether you have to pay let\u2019s say in May when already in February you obtained information you have to.<\/p>\n
A year is closed once you\u2019ve submitted your Annual Report and not a day before.<\/p>\n","protected":false},"excerpt":{"rendered":"
I don\u2019t know why accountants think that if the year is closed, it\u2019s closed. It has happened quite often that I have to explain that if the information becomes available after the year-end but before you\u2019ve submitted the Annual Report, this information is to be included within if it\u2019s relating to the previous year. It\u2019s […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28,46],"tags":[],"class_list":["post-4670","post","type-post","status-publish","format-standard","hentry","category-4-reporting","category-4-1-annual-report"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=4670"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4670\/revisions"}],"predecessor-version":[{"id":4671,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/4670\/revisions\/4671"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=4670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=4670"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=4670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}