The reconciliation is based on a cash basis and not on an accrual basis, therefore companies must only enter the payments made in the reporting year, i.e. January 1 – December 31, 2016, in line with the reporting principle of the Compatibility Act/ 1953.
Timing differences
Differences in the reconciliation due to the time of payment made by a company and payment received by the Government are considered as timing differences.
Exchange differences
The receipts by the Government in foreign currencies are converted to SRD at the daily exchange rate at the time of receipt. Therefore, in addition to receipts in SRD, the Government’s reporting sheets also include receipts in USD converted to SRD. This last category of receipts results in exchange rate differences in the reconciliation if the exchange rate at the time of receipt of a payment by the State deviates from the exchange rate on the day of payment by the company.
Settlement differences
Reconciliation differences due to non-cash transactions based on clearances of debts to the Government with claims on the Government therefore are considered payment(s). As these settlements are non-cash transactions, MOF cannot report these settlements as cash payments and therefore the occurring reconciliation differences between MOF and the relating company will be explained exclusively.
Other differences
The other reconciliation differences other than the abovementioned differences are considered to be all other differences between MOF and companies unless uncleared.
Uncleared differences
These are differences that are not cleared during the reconciliation process by MOF and the reporting company due to e.g. classifying errors at MOF -if amounts are positive- or at Companies if MOF cannot confirm the amounts received from the companies.