• Register
Search Questions / Answers

Welcome to AccountantAnswer Forum, where you can ask questions and receive answers. Although you need not be a member to ask questions or provide answers, we invite you to register an account and be a member of our community for mutual help. You can register with your email or with facebook login in few seconds

Get AccountantAnswer App

How should I report VAT gains /Net Sales increase originating from prior periods?


My company sells goods in Brazil and recently, the Supreme Court equivalent here judged that a specific tax basis was not constitutional, thus changing the VAT applied and generating some gains from prior periods. Should I report those gains in Retained Earnings / Prior Periods or in the current year P&L? Thanks

asked Apr 10 in General IFRS Discussion by Marcondes

1 Answer

0 votes
Maybe you could simply offset it from the current year liability as it does not meet the IAS 8 definition of a prior year error as there was no information in the prior year concerning the constitutional court ruling.. it is a current year movement.. unless the law was passed in the prior year.  If so, and the amount is material, then you may have to restate.
answered Jun 10 by Aliamar152 Level 1 Member (1,250 points)


...