AG

Since the invoice is for a previous financial year, the CFO would need to make prior period error corrections and amendments to financial statements with proper justification to AG for discrepancies between closing and opening balances.

“This would now necessitate for me to make a prior period error correction to my financial statements that had been submitted in the previous financial year. Hence, I was not willing to entertain that without having appropriate evidence. I would have to ensure disclosure notes of the financial statements are amended. I would need to ensure justification to the AG coming back next year on why there is a difference now between the closing and the opening balances. Hence, that process is now peculiar because it needs an additional justification.”