Restate Accounts

Restating accounts is a process required when there are changes to prior-year values in the AGAR. Follow these steps:

1. Understand When Restatement is Needed

• Changes to any AGAR box values compared to the prior year require a restatement.
• Restatement must include an explanation of what changed and why (e.g., corrections, reclassifications).

2. Check the JPAG Practitioners' Guide

• Refer to the 2024 Practitioners' Guide, Section 5.145, for official guidance.
• This provides details on documenting changes and ensuring compliance.

3. Prepare for Restatement

• Restatement will be included in your next AGAR submission (e.g., 2024/25 accounts).
• Update the "left-hand side" of the AGAR (prior-year values) to reflect the restated figures.

4. Document Changes Clearly

• Highlight which boxes are affected.
• Provide a brief explanation for each change (e.g., correcting an error, adopting a new accounting method).

5. Consider Accounting Methods

• If transitioning from Income & Expenditure (I&E) to Receipts & Payments (R&P):
  • Restate all relevant boxes, not just box 8.
  • Note differences in how VAT and adjustments are handled in each method.

6. Review and Submit

• Ensure all restated figures match your supporting documentation (e.g., bank reconciliation).
• Submit the updated AGAR with your explanation to the auditor.