Tuesday, September 21, 2010

Can we reverse the interest expense we accrued for last year.?

Last year we accrued for a potential liability of Interest Expense on back taxes. Turns out we only have to pay the tax and not the interest expense. If we reverse the journal, it will cause a credit balance in our expense account for the current year. Is this acceptable GAAP. The amount is not material enough to restate our financials?