Situation: In May 2021, an ABC SRL company receives an invoice from a supplier from August 2020, amounting to 8,000 lei.
What is the fiscal and declarative treatment of this invoice?
Solution: We specify that the procedure for correcting accounting errors is established in Subsection 2, point 2.5.5. of OMFP no. 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements, with the subsequent modifications and completions:
According to the mentioned legal provisions, the errors found in the accounting can refer either to the current financial year or to the previous financial years.
The correction of the errors is made at the date of their ascertainment.
Errors in prior periods are omissions and misstatements contained in the entity’s financial statements for one or more prior periods resulting from the error of using or not using credible information that:
- a) were available at the time the financial statements for those periods were approved for issue;
- b) could have been reasonably obtained and taken into account in the preparation and presentation of those annual financial statements.
Such errors include the effects of mathematical errors, errors in the application of accounting policies, ignorance or misinterpretation of events, and fraud.
We mention that the errors from the previous periods also refer to the erroneous presentation of the information in the annual financial statements.
According to the accounting procedures, the correction of the errors related to the current financial year is made on the account of the profit and loss account.
The correction of significant errors related to previous financial years is made on account of the carried forward result (account 1174 “The carried forward result from the correction of accounting errors”). Insignificant errors related to previous financial years are also corrected for the carried forward result.
However, according to the approved accounting policies, insignificant errors can be corrected at the expense of the profit and loss account. We specify that the insignificant errors are those that are not likely to influence the financial and accounting information. An error is considered significant if it could influence the economic decisions of users, made on the basis of annual financial statements.
We mention that the analysis if an error is significant or not is performed in context, considering the nature if the individual or cumulated value of the elements.
Important! The correction of the errors related to the previous financial years does not determine the modification of the financial statements of those years.
In case of errors related to previous financial years, their correction does not imply the adjustment of the comparative information presented in the financial statements.
Comparative information regarding the financial position and financial performance, respectively the change of the financial position, are presented in the explanatory notes.
In the explanatory notes to the financial statements, information must be presented regarding the nature of the errors found and the periods affected by them.
Thus, the registration of the reversal of an accounting operation related to the current financial year is performed either by correcting with the minus sign the initial operation (reversal in red), or by its reverse registration (reversal in black), depending on the accounting policy and software used. “
Considering the previously mentioned regulations, if the errors are significant, according to the provisions of the manual of accounting policies and procedures, applicable within the company, their correction will be made on account of account 1174.
If the errors are insignificant, the correction of the errors from the previous years will be made on account of the income account, from the current year.
In the explanatory notes to the financial statements for the year 2021, information must be presented regarding the nature of the errors found and the periods affected by them. Thus, the company ABC SRL will enter the amount of VAT in line 34 “Tax deduction regularizations”, in the VAT Return (300).
In D394, the invoices received late from the suppliers will be reported in the fiscal period (month/quarter) in which they were received, according to the provisions of OPANAF no. 3769/2015 with the subsequent modifications and completions.
Legal basis:
– MFP Order 1802/2014 for the approval of the Accounting Regulations regarding the individual annual financial statements and the consolidated annual financial statements;
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– ANAF Order 3769/2015 regarding the declaration of deliveries/services and acquisitions made on the national territory by the persons registered for VAT purposes and for approving the model and content of the informative declaration regarding the deliveries/services and acquisitions made on the national territory by the persons registered for VAT purposes;
– ANAF Order 632/2021 for the approval of the model and content of the form (300) “Value added tax return”.