Prior period expenses

Accounting Entries 820 views 3 replies

Vivek Jarial

Student

272 Points Posted on 26 July 2013

Dear All,

One of our company has not filled its annual return (ROC) for last 3 years. In the current year it has filled all the three returns. In our account books we have not created any provision towards certification fee of the forms and ROC fee.

Kindly advice wether these ROC expenses are treated as prior period expenses in this current year.

Regards,

Vivek Jarial

Replies (3)

Aman

Finance Professional

604 Points Posted on 26 July 2013

Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.

In your case there is omission of not filing return, hence should be treated as prior period items/expenses.

Correct me if wrong..

VIVEK

Article Assistant

29 Points Posted on 26 July 2013

Dear Vivek,
Prior period items are income or expenses which arise in the Current period as a result of errors or ommissions in the preparation of financial statements of one or more periods(AS-5). In the case of this company it has not filed Annual return with ROC for past 3 years&It filed in the current year.It is an error from the part of company.So ROC fee can be treated as PRIOR PERIOD expenses and can be debited to profit&loss account accordingly.

Regards,

VivekPattaje

Vivek Jarial

Student

272 Points Posted on 26 July 2013

As per my understanding ROC filing are required when the AGM is being held. FY 2012-13 the AGM will held on September 2013 and filing will be made on October 2013/November 2013 so the filing expenses for AGM held in the month of Septmeber 2013 will become the part of expenses of FY 2013-14.