Results 1 to 4 of 4

Thread: Director remuneration - Correction

  1. #1
    New Member
    Join Date
    May 2017
    Location
    Mpumalanga
    Posts
    3
    Thanks
    1
    Thanked 0 Times in 0 Posts

    Director remuneration - Correction

    Hi, we have been declaring directors remuneration from 2010 on the financial statements. It has never been paid out to the directors and it should have been journaled to their loan accounts. But that has not been done and I want to make a correction for it this year. I am happy that this will show as an expense on the 2017 statements, but I also know that it has been allocated as an expense in my previous statements. However, the loan accounts of the directors have not been corrected. Can I still make the correction this year? What is the complications and must the IRP5's be resubmitted via Easyfile for all these years in order for to make this correction in their loan accounts? Also, if I credit the applicable loan account, what do I debit since directors remuneration has already been shown as an expense in the previous years (but only on financials)?

  2. #2
    Gold Member
    Join Date
    Feb 2016
    Location
    Johannesburg
    Posts
    599
    Thanks
    47
    Thanked 173 Times in 154 Posts
    Your first action should be to ensure that your books agree with the financials. That is usually standard practice.
    If directors remuneration is out, then something else must be missing a credit. If this is for closed years, then you would be debiting retained income and crediting something? My guess is the loan accounts.

    If it turns out that the financials are incorrect, then they should be reissued. If the company's tax returns have already been submitted then you should get whoever draws up the financials to make the call.

  3. Thanks given for this post:

    ConstructionAccounting (05-May-17)

  4. #3
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Location
    Durban, South Africa
    Posts
    22,201
    Thanks
    3,211
    Thanked 2,618 Times in 2,205 Posts
    Blog Entries
    12
    Quote Originally Posted by ConstructionAccounting View Post
    Hi, we have been declaring directors remuneration from 2010 on the financial statements. It has never been paid out to the directors and it should have been journaled to their loan accounts. But that has not been done and I want to make a correction for it this year.
    So what has the expense entry been posted against?
    (You can't raise the debit entry without reflecting a credit somewhere, otherwise the books won't balance).

  5. #4
    New Member
    Join Date
    May 2017
    Location
    Mpumalanga
    Posts
    3
    Thanks
    1
    Thanked 0 Times in 0 Posts
    Impossible for me to see - i can only see the remuneration. It is possible like Andromeda said that they used the retained income account. Because of this and some other issues we had to let the auditors go so i think I will work through each account and try to find the other entry. That will be best - to tackle this thing from the very beginning.

Similar Threads

  1. Monthly remuneration
    By betst07 in forum Accounting Forum
    Replies: 2
    Last Post: 19-Nov-16, 05:26 AM
  2. PF Correction
    By jetpp1@absamail.coza in forum Electrical Contracting Industry Forum
    Replies: 4
    Last Post: 17-Aug-15, 11:23 AM
  3. [Question] How to go about a change in remuneration structure
    By dellatjie in forum Labour Relations and Legislation Forum
    Replies: 3
    Last Post: 20-May-13, 07:57 AM
  4. Cede or assigning of your remuneration package. What does this mean?
    By Catz in forum Labour Relations and Legislation Forum
    Replies: 3
    Last Post: 16-Feb-12, 09:32 PM
  5. Civil service remuneration strategy.
    By Dave A in forum South African Politics Forum
    Replies: 1
    Last Post: 06-Jun-07, 10:40 AM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •