During the year, the company identified that a receivable balance of £82,235 due from a connected company had been incorrectly written off in the prior period and partially recognised within profit and loss £74,548 and the director’s current account £7,687.
On review, it was determined that this treatment did not appropriately reflect the substance of the transaction. Accordingly, the comparative figures for the year ended 29 January 2025 have been restated to correct this error.
The correction has resulted in the reinstatement of the receivable and a corresponding adjustment to retained earnings and the director’s current account. The impact of the prior period adjustment on the comparative financial statements is set out below:
Impact on Statement of Financial Position (as at 29 January 2025)
As previously reported Adjustment As restated
Receivables £0 ±£82,235 £0
Director’s current account £85,298 +£7,687 £92,985
Retained earnings £(158,379) £(7,687) £(166,066)
The prior period adjustment has no impact on cash flows.
Comparative figures in the financial statements have been restated accordingly.