Re: [sap-acct] What is the proper treatment of an error made to prior year depreciation?
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Posted by ron.roberts(Senior SAP FI/CO Consultant)on 07/27/2009 06:44:00 PM
This is not an SAP question. This is an accounting question. The first
consideration is the materiality of the amount. If total depreciation for
the year of all assets is 100,000 then there is a material misstatement of
depreciation. If total depreciation is 10,000,000 then it is clearly
immaterial. Then there is a possible measure of materiality against total
earnings (or loss).
Check with your company Controller or Chief Financial Officer to resolve
this. You may need to get your outside auditors involved, also.
On Sat, Jul 25, 2009 at 2:10 PM, USER_1650759 via sap-acct <
sap-acct@groups.ittoolbox.com> wrote:
>
>
> $52,000 depreciation taken in FY07 instead of $25,000 thus resulting in
> $27,000 less retained earning for the year. Should FY07 be amended or can
> accumlated depreciation just be reduced by $27,000 in FY09and thus
> increasing FY09 Income by the same amount. __.____._
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