093 Check point of Changes in accounting policies and errors, and retrospective adjustment
New accounting standards will be applied from the year ended March 31 2012, which is “accounting standards of changes in accounting policies and errors.” They will need a note for the new accounting standards which is not applied to the financial statements for the year-end disclosure. The items below should be disclosed.
1. The name of new standards and its overall explanation
2. Planned date of the application of the standards
3. Impact that the new standards give to the company
Consideration of taxation should be treated with great care in retrospective transaction. Even if the accounting information should be changed retrospectively, this does not change the “already fixed year-end financial statements in the past”. So, retrospective adjustment will not make any effect on taxation.
However, if the change of the accounting information belongs to an error of the past transaction, accounting restatement will be required as well as submitting a return of tax adjustment and adjusting tax calculation of the past.
