Sigh…new client T2. Reviewed books…CEBA was repaid by taking an LOC (refinance essentially) but client DID get the $20K forgiveness. Problem: prior accountant did not clear the forgiven part on the last T2 or in the GL! (Paid in Jan/24 and now doing the 25 return so balances are wrong of course.) So now client remains with a $40K balance ($20K LOC / $20K original CEBA not recorded as forgiven).
I s’pose the “correct” way would be simply to file a revised 24 T2 with the changes - income statement income inclusion, reduction of loan, offset on Line 705. As there’s no tax change this seems a bit of a “management” issue more than anything. (Corp is small and was not taxable in 2024.) PPA on the F/S.
Recording the same entries in the current year accomplishes the same thing…but is a year off-kilter.
Proper or easy? (LOL - this is like “head vs heart”.) I’m leaning to proper even though it’s kinda goofy.
Note: There is NO external reporting to anyone other than CRA.