Prior period item - please discuss

Hemchand Kohli (Accountant) (889 Points)

30 May 2013  

Company A Provided some services to Govt Department in the year 2009-10 and the payment was released by the department in the same year.  In the year 2011-12, govt department has made recovery on a/c of excess payment as per Audit of their accounts.  Now the question is that in the year 2011-12 for Company it is an expense of Prior period items or not.  Please discuss.