Support topics - VT Final Accounts

Prior year adjustments

Summary of accounting standards
Prior year adjustments should be accounted for by restating the comparative figures and adjusting the opening balance on the profit and loss account reserve for the current year. The amount by which the opening reserves are restated must also be shown on the Statement of Total Recognised Gains and Losses. For more details see the Financial Reporting Standard for Smaller Entities, paragraph 2.15. See FRS 3 Reporting Financial Performance, paragraph 29 for medium/large companies.

Manual entry workbooks

  1. The current and comparative trial balances on the TB sheet should both be stated as if the change had always been correctly and normally accounted for in the comparative year

  2. The net gain or loss arising from prior year adjustments after tax should be noted on the Prior year adjustments line on the Data sheet in Excel

  3. The Statement of Total Recognised Gains and Losses option should be ticked in the Workbook Properties dialog (second button on the VT toolbar)

Workbooks linked to VT Transaction+ or entered using the VT Books menu in Excel

  1. Enter the adjustments in VT Transaction+/using the VT Books menu with a transaction date falling within the comparative year. Adjustments that affect the profit and loss account should be analysed to a relevant detailed p/l account. In other words, they should not be analysed directly to the profit and loss reserve account in the balance sheet or any other special account

  2. Click on the Get Balances From VT Transaction button on the VT toolbar in Excel. Ensure that the Update comparatives with those in VT file option is ticked in the Get Balances dialog and click the OK button

  3. The net gain or loss arising from prior year adjustments after tax should be noted on the Prior year adjustments line on the Data sheet in Excel

  4. The Statement of Total Recognised Gains and Losses option should be ticked in the Workbook Properties dialog (second button on the VT toolbar)

Workbooks linked to VT Transaction

  1. Enter the adjustments in VT Transaction with a transaction date falling within the comparative year. Adjustments that affect the profit and loss account should be analysed to a relevant detailed p/l account. In other words, they should not be analysed directly to the profit and loss reserve account in the balance sheet or any other special account

  2. Choose the Year End Transfer command from the Transaction menu of VT Transaction. The transfer should be dated the last day of the comparative period (this updates the existing year-end)

  3. Click on the Get Balances From VT Transaction button on the VT toolbar in Excel

  4. Click on the Manually Enter Comparatives button on the VT toolbar in Excel. In the Manually Enter Comparative dialog, click on the Get From VTT button

  5. The net gain or loss arising from prior year adjustments after tax should be noted on the Prior year adjustments line on the Data sheet in Excel

  6. The Statement of Total Recognised Gains and Losses option should be ticked in the Workbook Properties dialog (second button on the VT toolbar)