Correcting accounting errors

As financial statement closing operations are coming completion, it is important to understand how to correct accounting errors based on recent changes in the law. Accounting standard OIC 29 specifies that corrections must be made in the fiscal year in which the error is discovered, regardless of its magnitude. If there is a financial statement are mandatory (Spa or Srl), the error must be disclosed in the Notes. The gravity of the error determines how it should be recorded in the entries: it may be posted at equity or included as contingent assets or liabilities in the income statement. In some cases, a new resolution to approve the financial statements may be required without incurring penalty , but  charges may apply . Additionally, under Article 83 of the Tuir, the same time allocation criteria for tax purposes apply to corrections of accounting errors. Errors from previous years can be imputed and deducted in the year they are discovered, as long as the five-year assessment period has not expired. However, these criteria apply only to companies with audited financial statements from the tax year 2022 onwards, for both IRS and IRAP purposes. These measures aim to prevent the need for multiple supplementary tax returns.