---
kind: "section"
citation: "18 C.F.R. § 367.9"
title: "18"
number: "367.9"
heading: "Prior period items."
url: "https://uscodex.org/cfr/18/367.9"
---

# §367.9. Prior period items.

- (a) Items of profit and loss related to the following must be accounted for as prior period adjustments and excluded from the determination of net income for the current year:
  - (1) **Correction of an error in the financial statements of a prior year.**
  - (2) Adjustments that result from realization of income tax benefits of pre-acquisition operating loss carry forwards of purchased subsidiaries.
- (b) All other items of profit and loss recognized during the year must be included in the determination of net income for that year.

## Notes

### Authority

Authority: 15 U.S.C. 717 et seq., 16 U.S.C. 791a et seq., and 42 U.S.C. 16451-16463.

### Source

Source: Order 684, 71 FR 65226, Nov. 7, 2006, unless otherwise noted.