PBU 22/2010 CORRECTION OF ERRORS IN ACCOUNTING AND REPORTING

An error is the incorrect reflection of the facts of economic activity in accounting and reporting. They also evaluate the situation when transactions were not recorded in accounting at all. Simply put, if, through your own fault, you made incorrect entries or did not reflect the transaction at all, or filled out the reports incorrectly, this is a mistake. This is indicated in paragraph 2 of PBU 22/2010.

But in this same paragraph of the PBU there is an important caveat. Inaccuracies and omissions in the recording of business transactions identified when receiving new information are not an error. For example, if a counterparty notifies you that he previously provided you with a primary report with incorrect data, but you have already reflected the operation in accounting, this will not be recognized as an error. After all, this was not your fault. You won't have to correct the records either.

Types of errors

The procedure for correcting errors in accounting and reporting depends on the nature of the error made and on the period in which it was made and discovered.

You may discover an error at one of the following moments.

Errors are divided into significant and insignificant. You will have to determine the materiality threshold yourself. After all, there are no limit values ​​provided for in the legislation.

In this case, one must proceed from both the magnitude and the nature of a particular item or group of items in the financial statements. Specify the thresholds for the materiality of an error in the accounting policy (clause 7 of PBU 1/2008, clause 3 of PBU 22/2010).

For example, you can write down the materiality threshold as follows: “An error is considered significant if the ratio of its amount to the balance sheet currency for the reporting year is at least 5 percent.”

I. General provisions

1.

This Regulation establishes the rules for correcting errors and the procedure for disclosing information about errors in accounting and reporting of organizations that are legal entities under the legislation of the Russian Federation (with the exception of credit organizations and state (municipal) institutions) (hereinafter referred to as organizations).

2.

Incorrect reflection (non-reflection) of facts of economic activity in the accounting and (or) financial statements of an organization (hereinafter referred to as an error) may be due, in particular, to:

• incorrect application of the legislation of the Russian Federation on accounting and (or) regulatory legal acts on accounting;
• incorrect application of the organization's accounting policies;
• inaccuracies in calculations;
• incorrect classification or assessment of facts of economic activity;
• incorrect use of information available at the date of signing the financial statements;
• unfair actions of officials of the organization.

Inaccuracies or omissions in the reflection of facts of economic activity in the accounting and (or) financial statements of an organization identified as a result of obtaining new information that was not available to the organization at the time of reflection (non-reflection) of such facts of economic activity are not considered errors.

3.

An error is considered significant if it, individually or in combination with other errors for the same reporting period, can affect the economic decisions of users made on the basis of the financial statements compiled for this reporting period. The organization determines the materiality of the error independently, based on both the size and nature of the relevant item(s) of the financial statements.

Error correction

Identified errors and their consequences must be corrected (clause 4 of PBU 22/2010).

Make accounting corrections based on primary documents. Also draw up accounting statements, indicating the rationale for the corrections. This follows from the general rule that each fact of economic activity must be documented in a primary accounting document. This is directly stated in Part 1 of Article 9 of the Law of December 6, 2011 No. 402-FZ.

Having determined the significance of the error and taking into account the moment when it was discovered, make corrections in the accounting. How exactly – the table below will help you with this.

Correcting errors in accounting documentation

The algorithm for correcting inaccuracies in accounting depends on where the error was made - in the primary records and registers or in the reporting itself, the timing of the error detection and whether it is significant.

There are the following correction methods in the primary and registers:

• Proofreading - used in paper documents; incorrect information is crossed out so that the original information can be read, and the correct entry is made next to it. The correction must be certified by the full name and signature of the responsible person, the date and seal of the company (Clause 7, Article 9 of the Law “On Accounting” dated December 6, 2011 No. 402-FZ).

ATTENTION! There are a number of documents in which corrections are unacceptable. These include cash and bank documents.

• “Red reversal” - used in case of incorrect posting of accounts. When entering by hand, the erroneous entry is repeated in red ink, and the amounts highlighted in red must be subtracted when calculating the totals. As a result, the incorrect entry is canceled, and instead a new entry must be made with the correct accounts and amount. If accounting is kept in a standard computer program, then it is usually enough to make a posting with the same correspondence, but indicate the amount with a minus sign. The entry in the registers will be subtracted and offset the incorrect entry. Next you need to make the right one.
• Additional entry - used if the original correspondence of accounts was correct, but with the wrong amount, or if the transaction was not recorded on time. The company makes an additional entry for the missing amount, and if the original amount was overestimated, it makes an entry for the required difference using a red reversal. The accountant is also required to draw up a certificate explaining the reason for the correction.

For information on how to draw up such a certificate, read the article “Accounting certificate of error correction - sample.”

Accounting

The postings used to make corrections depend on the moment when the error is discovered and how significant it is. Accounting entries will differ in the following cases:

• correct errors of the current period;

• mistakes of past periods - significant and insignificant - rule.

If your organization is small, then you can apply a simplified procedure. In this case, the significance of the error will not matter, just as it will not play a role when this inaccuracy was discovered.

How to correct errors of the current period in accounting

In accounting, correct errors of the current period with the necessary adjusting entries.

An example of correcting an error in accounting. An error was discovered before the end of the year when preparing half-year reports.

On May 18, the accountant of Alpha LLC discovered that in the first quarter of accounting, advertising expenses were mistakenly written off in the amount of 25,000 rubles. (without VAT). While in fact the amount of expenses amounted to 23,000 rubles. (without VAT).

The error was made and identified within one year. Therefore, it needs to be corrected on the same accounting accounts in the month when it was discovered. In May, the accountant made corrections based on the accounting certificate:

Debit 44 Credit 60 – 25,000 rub. – the debt to the supplier is reversed;

Debit 90-2 Credit 44 – 25,000 rub. – expenses for ordinary activities were reversed;

Debit 44 Credit 60 – 23,000 rub. – the debt to the supplier is reflected;

Debit 90-2 Credit 44 – 23,000 rub. – advertising expenses are written off as expenses for ordinary activities.

On June 22, the accountant of Alpha LLC discovered that in the first quarter the accrued advance payment for corporate property tax was incorrectly reflected in the accounting records. Instead of 210,000 rub. 180,000 rubles were reflected. There is no error in tax reporting.

The error was found before the end of the year, so it was reflected as part of expenses for ordinary activities of the reporting period. Corrections were made to the accounting based on the accounting certificate:

Debit 20 Credit 68 subaccount “Calculations for property tax of organizations” – 30,000 rubles. – additional assessment of corporate property tax for the first quarter is reflected.

Reporting 2010. How to avoid fines

Starting next year, the unified social tax will be replaced by insurance contributions paid to the pension fund and social insurance fund. This replacement will significantly complicate the reporting procedure for enterprises. Andrey Muzychuk, director of the St. Petersburg branch of ZAO PF SKB Kontur, talks about how you can reduce the risk of mistakes and subsequent fines.

Content

— Andrey Vladimirovich, what will happen to reporting on contributions in 2010?

— As you know, now enterprises submit reports to the Pension Fund once a year. Before March 1, they submit to the Pension Fund personalized information on insured employees, a statement of payment of contributions and information on arrears of contributions. From 2010, in accordance with the amendments made to Federal Law 27, personalized reporting will be provided every six months, and from 2011 - once a quarter. At the same time, in accordance with the 212 Federal Law, reporting on insurance premiums appears to the Pension Fund of the Russian Federation, which policyholders must submit quarterly. It should be noted that in 2010, companies and entrepreneurs with more than 100 employees will be required to submit electronic reports signed with an electronic digital signature. And from 2011, such an obligation will appear for insurers with more than 50 employees.

— Is the process of preparing reports to the Pension Fund somehow automated now?

— Until recently, enterprises most often used so-called “filler programs”, which are installed on the computer of the employee preparing the reports. The main disadvantage of such programs is obvious both to automation specialists and to users of “typers”. If you use a “stuffer”, you are forced to independently monitor the updating of reporting forms, search for or even wait for updates released specifically for your “stuffer”.

— It turns out that the more reporting forms appear, the greater the risks associated with this lack of “fillers”?

- Absolutely right.

— But surely there are other programs without this drawback?

— Yes, but such a product appeared quite recently. We are talking about the web service “Kontur Report-PF” distributed by our branch. This is a fundamentally new product. When working with it, an enterprise employee prepares reporting data online. That is, the program is not installed on the policyholder’s computer. Using his electronic digital signature (EDS) certificate, the accountant logs on to the server, which already has up-to-date reporting forms. After which he works with these forms not on his hard drive, but directly on the server. Moreover, “Kontur-Report PF” allows you to check the prepared reports. The verification is carried out on the server using a special complex, which is used by the Pension Fund for express control of reporting. After verification, the prepared files can be printed and submitted to the Pension Fund on paper, or they can be immediately sent to the Pension Fund in electronic form using special programs (for example, “Kontur-Extern Light”). Of course, such a service, unlike “fillers”, is

paid, but its cost is not too high. Especially when compared with possible fines for errors in reporting.

— Working with up-to-date reporting forms located on the service provider’s server is also used, it seems, in the Kontur-Extern program for preparing and submitting tax reporting?

— Yes, and it is this unique product that is distributed by our St. Petersburg branch of the federal IT company SKB Kontur. The Kontur-Extern system, which uses the web service principle you mentioned, has long proven itself at the federal level to be the best. The main advantages of the Kontur-Extern system, in my opinion, are obvious. First, there is no need to install form updates. Secondly, if there is a communication failure while sending reports, the accountant will know about it at the same second and will be able to resend the report in a timely manner.

— Your branch has been operating in St. Petersburg for 2.5 years. During this time, have the products and services offered by the branch become popular in the Northern capital?

- It seems to me that yes. This is confirmed by the fact that among our clients are such significant enterprises as the Administration of the Government of the Leningrad Region, the Tariff Committee of St. Petersburg, Petersburgregiongaz CJSC, Gazpromenergo LLC, Lenenergo OJSC. The dynamic development of the branch is due to the fact that in addition to the main product - the system for generating and submitting tax reports "Kontur-Extern" - we offer enterprises many other programs integrated with the "Kontur-Extern" system, and also provide services that are in demand by businesses related to protection information. Among the programs offered is the “Kontur Report-PF” web service, which we discussed in detail at the beginning of the interview, as well as the “Kontur-Normative” reference and legal web service. Purchasing such programs in a package with the Kontur-Extern system allows enterprises to significantly save on sending all types of reports and legal reference systems. In addition, we are engaged in the issuance and maintenance of electronic digital signatures

solutions for working on such trading platforms as Gazprom Neft and Sberbank AST, we provide digital signatures and means of cryptographic information protection for working in the Unified Information System of the Federal Tariff Service of Russia.

Editorial

Fontanka.ru 12:00

Legal documents

• 212 Federal Law

How to correct significant errors from previous periods in accounting

Correct significant errors from last year that were discovered before the approval of the annual reports for that period using the appropriate accounts of costs, income, calculations, etc.

If you identify significant errors from previous years, the reporting for which has been signed and approved, make corrections using account 84 “Retained earnings (uncovered loss)” (subclause 1, clause 9 of PBU 22/2010).

There are two options.

Option 1. When, as a result of an error, the accountant did not reflect any income or overstated an expense, make the following entry:

Debit 62 (76, 02…) Credit 84

– erroneously not reflected income (excessively reflected expenses) of the previous year was identified.

Option 2. If, as a result of an error, the accountant did not reflect any expense or overstated income, make the following entry:

Debit 84 Credit 60 (76, 02…)

– an erroneously unrecorded expense (overly reflected income) from the previous year was identified.

What to do when errors were made not only in accounting, but also in tax accounting?

Then in the first case you will have to make the necessary additional charges. Here, for example, is what entry needs to be made for income tax if the tax base was underestimated:

Debit 84 Credit 68 subaccount “Income Tax”

– additional income tax was accrued for the previous year according to the updated declaration.

In the second case, when taxes were overpaid as a result of an error, make entries based on the corrections you make in tax accounting. Three situations can arise here.

1. If you are filing an amended tax return for the year in which an error was made, then make an entry:

Debit 68 subaccount “Income Tax” Credit 84

– the income tax of the previous year was reduced according to the updated declaration.

2. When correcting errors in tax accounting for the current period, make the following entry in the accounting book:

Debit 68 subaccount “Income Tax” Credit 99

– a permanent tax asset is reflected due to the fact that in the tax accounting of the current period expenses (reduced income) relating to the previous year are recognized.

3. When a decision was made not to correct an error in tax accounting, then there is no need to make additional entries. Since in accounting, the correction of significant errors does not affect the accounts of financial results of the current period.

Correcting errors in tax accounting

If the provisions of PBU 22/2010 are relevant for legal entities, since the self-employed population is not required to keep accounting records, then the procedure for correcting errors in tax accounting applies to both entrepreneurs and organizations.

According to Art. 314 of the Tax Code of the Russian Federation, errors in tax registers must be corrected using a corrective method: there must be a signature of the person who corrected the register, the date and justification for the correction.

The procedure for correcting errors in tax accounting is described in detail in Art. 54 Tax Code of the Russian Federation.

If an error in calculating the tax base for previous years was discovered in the current reporting period, then it is necessary to recalculate the tax base and the amount of tax for the period the error was committed.

If it is impossible to determine the period of the error, then the recalculation is made in the reporting period in which the error was found.

Errors in tax accounting, as a result of which the tax base was underestimated, and therefore the tax was underpaid to the budget, must not only be corrected, but also an update provided to the Federal Tax Service for the period the error was committed (Article 81 of the Tax Code of the Russian Federation). However, if an error is discovered during a tax audit, then there is no need to submit an amendment. In this case, the amount of arrears or overpayments will be recorded in the audit materials, and the tax authorities will enter this data into the company’s personal account card. If the company submits a clarification to the tax authority, the data on the card will be doubled.

If at the end of the year there is a dispute with the Federal Tax Service and there is a high probability of additional taxes (penalties), then an estimated liability must be recognized in the accounting reports. Read more about this in the material “Tax dispute = estimated liability”.

In the case where a company overpaid tax due to its own error, it may submit an amendment or not correct the error (for example, the amount of overpayment is insignificant). Another option that a company can use is to reduce the tax base in the period the error is discovered by the amount of overstatement of the tax base in the previous period. This can be done when calculating transport tax, mineral extraction tax, simplified tax system and income tax.

ATTENTION! This method cannot be used when identifying errors in VAT calculations, since inflated VAT can only be corrected by submitting an amendment for the period the error was committed.

If a company operated at a loss and identified an error in the previous period that would increase the loss, then these expenses cannot be included in the tax calculation for the current period. The company should submit an update with new amounts of expenses and losses (letter of the Ministry of Finance dated April 23, 2010 No. 03-02-07/1-188).

ConsultantPlus experts explained in detail what to do if errors are identified in primary documents. Get trial access to the K+ system and go to the Tax Guide for free.

How to correct minor errors from previous periods in accounting

Correct minor errors in accounting. Profit or loss that arises as a result of adjustments should be reflected in account 91 “Other income and expenses”. It does not matter whether the reporting was approved at the time the error was discovered or not. This conclusion follows from paragraph 14 of PBU 22/2010.

If, as a result of a minor error, the accountant did not reflect any income or overestimated expenses, make the following entry:

Debit 60 (62, 76, 02...) Credit 91-1

– erroneously not reflected income (excessively reflected expense) was identified.

When, as a result of a minor error, the accountant did not reflect an expense or overstated income, make an entry:

Debit 91-2 Credit 02 (10, 41, 60, 62, 76...)

– an erroneously unrecorded expense (overrecorded income) was identified.

Correcting minor errors in accounting affects the accounts of the financial results of the current year, but this does not always happen in the tax office. This means that permanent differences will arise that need to be reflected in accounting according to the rules of PBU 18/02.

There are two options. When income tax was underestimated or overestimated due to minor errors.

Option 1 – income tax is underestimated . In this case, corrections are made in tax accounting and an updated tax return is submitted for the period in which the error was made. At the same time, additional income tax is charged. However, in accounting this is done by the current period. In this case, a permanent tax asset must be reflected in accounting:

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Permanent tax assets”

– a permanent tax asset is reflected.

This follows from paragraphs 4, 7 of PBU 18/02.

An example of correcting a minor error (unreported income) in accounting and tax accounting. A mistake was made last year, the reporting for which was signed and approved

In March 2021, an accountant at Alpha LLC discovered an error when calculating income tax for 2015 - revenue from the sale of goods in the amount of 250,000 rubles was not taken into account. Income at Alfa is recognized equally in both tax and accounting. As a result, the organization underpaid the tax, the amount of which amounted to 50,000 rubles. (RUB 250,000 × 20%).

The accountant filed an updated income tax return for 2015 and made the following entries:

Debit 62 Credit 91 subaccount “Other income” – 250,000 rubles. – income (revenue from sales) of the previous tax period identified in the reporting year is reflected;

Debit 99 subaccount “Additional payment of income tax due to detection of errors” Credit 68 subaccount “Calculations for income tax” - 50,000 rubles. – additional income tax was accrued for the previous year according to the updated declaration;

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Permanent tax asset” – 50,000 rubles. – a permanent tax asset is reflected in the amount of revenue from sales in 2015, which is shown in accounting in 2016 income, and in tax accounting - in 2015 income.

For the first quarter of 2021, the amount of tax payable is 170,000 rubles. Thus, the total income tax debt to the budget amounted to 220,000 rubles. (RUB 170,000 + RUB 50,000), including RUB 170,000. – current income tax and 50,000 rubles. – additional payment due to an error in the previous period. Alpha's accountant makes the following entries:

Debit 99 subaccount “Conditional income tax expense” Credit 68 subaccount “Calculations for income tax” – 220,000 rubles. – reflects the conditional income tax expense.

Option 2 – income tax is too high . In this case, the accountant himself decides when to make changes or even not to make them at all.

If he corrects the error by recalculating the tax of the current period, then he will make changes in both accounting and tax accounting at the same time. There will be no difference. They will arise only if the accountant decides to submit an updated declaration for the past period or not to make any changes at all. Then the tax profit of the current period will be greater than what will be obtained in accounting. This means there will be a permanent tax liability. Reflect it in accounting as follows:

Debit 99 subaccount “Fixed tax liabilities” Credit 68 subaccount “Calculations for income tax”

– a permanent tax liability is reflected.

This follows from paragraphs 4, 7 of PBU 18/02.

An example of correcting a minor error (not reflected expense) in accounting and tax accounting. A mistake was made last year, the reporting for which was signed and approved. In tax accounting, an error is corrected in the period in which it was made.

In March 2021, an accountant at Alpha LLC discovered an error when calculating income tax for 2015 - expenses (cost of goods sold) in the amount of 150,000 rubles were not taken into account. Expenses are recognized equally in tax and accounting. As a result, the organization overpaid the tax; the amount of the overpayment amounted to 30,000 rubles. (RUB 150,000 × 20%).

Alpha's accountant filed an updated income tax return for 2015 and made the following entries:

Debit 91 subaccount “Other expenses” Credit 41 – 150,000 rubles. – expenses (cost of goods sold) of the previous tax period identified in the reporting year are reflected;

Debit 68 subaccount “Calculations for income tax” Credit 99 subaccount “Overpayment of income tax on an updated declaration” - 30,000 rubles. – the income tax of the previous year was reduced according to the updated declaration;

Debit 99 subaccount “Continuous tax liabilities” Credit 68 subaccount “Calculations for income tax” - 30,000 rubles. – a permanent tax liability is reflected for the amount of expenses of 2015, which is shown in accounting in expenses of 2021, and in tax accounting - in expenses of 2015.

For the first quarter of 2021, the amount of tax payable to the budget is 110,000 rubles. The balance sheet profit is less than the tax profit due to expenses taken into account for taxation in the updated declaration of the previous year. The tax calculated on balance sheet profit is RUB 80,000. (RUB 110,000 – RUB 30,000). The accountant makes the following entry:

Debit 99 subaccount “Conditional income tax expense” Credit 68 subaccount “Calculations for income tax” - 80,000 rubles. – reflects the conditional income tax expense.

Taking into account the overpayment of tax for 2015, 80,000 rubles must be transferred to the budget. (RUB 110,000 – RUB 30,000).

Attention: there is an opinion that all expenses that are not taken into account when calculating income taxes should be reflected in accounting as part of other expenses. This is not true. Officials will be fined for mistakes. If, in the end, taxes are also underestimated, then the organization itself will be punished, and the amount of fines will increase. But there is a way out.

If, during an audit, a similar error from previous years is discovered, due to which reporting and taxes are distorted, then it will not be possible to avoid liability. You will mitigate the consequences if you recalculate your taxes yourself, provide the correct information, and pay penalties.

As for the mistakes of this year, everything can be corrected. If you qualify expenses correctly, you will successfully generate reports and calculate taxes. Cancel erroneous entries.

Remember, expenses are taken into account depending on their purpose and the conditions under which they are incurred. So, for example, in accounting, costs are classified not only as other, but also as expenses for ordinary activities (clause 4 of PBU 10/99).

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The Alpha organization pays compensation to an employee when his car is used for business purposes. Compensation is 5000 rubles. per month. But when calculating income tax, only 1,200 rubles are taken into account. (Resolution of the Government of the Russian Federation of February 8, 2002 No. 92).

Error!

Debit 20 Credit 73 – 1200 rub. – compensation was accrued to the employee for a personal car within the norms;

Debit 91-2 Credit 73 – 3800 rub. – compensation was accrued to an employee for a personal car in excess of the norm.

Correctly like this:

Debit 20 (26, 44...) Credit 73 – 5000 rub. – compensation was accrued to the employee for a personal car.

Here's how to fix the error:

Debit 91-2 Credit 73 – 3800 rub. – compensation to an employee for a personal car in excess of the norm was reversed;

Debit 20 Credit 73 – 3800 rub. – additional compensation was accrued to the employee for a personal car.

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What determines the order in which errors are corrected?

The procedure for correcting errors depends
on the following factors: 1. The level of significance of the error.

According to the level of significance, errors are of two types:

• Significant mistake
• Minor error.

In accordance with paragraph 3 of PBU 22/2010, an error is considered significant if it, individually or in combination with other errors for the same reporting period, can affect the economic decisions of users made on the basis of the financial statements prepared for this reporting period period.