[Forum] Rules on Prior Years’ Unbooked Obligations

Accounting 101

Sender: Hi po! Would just like to clarify about continuing appropriations.

Are we allowed to use continuing appropriations to pay prior years expenses that were not obligated last year although the entire transaction transpired last year at wala lang talaga na book up?

Example: There were 2020 transactions that were completed and rendered last 2020 kaso wala na obligate at the close of the year 2020 so ngaung 2021 lang i book gamit ang continuing appropriations. Are we allowed to do that? Considering the fact that by doing so, expenses for the current year will be misrepresented since may mahahalong prior year na expense.

Thank you po for the clarification!