9. Restatement
During a review of the Partnership’s accounting records, it was discovered that approximately $85,000 of lease revenue was recognized in the year December 31, 2013 when it should have been recognized in the year ended December 31, 2012. Management concluded that there was an error and evaluated the effect on the Partnership’s financial statements. Management evaluated the materiality of the error from qualitative and quantitative perspectives and concluded that the error was material to the fiscal year ended December 31, 2013. The accompanying financial statements for 2012 have been restated to reflect the corrections. The restatement had no impact on the partners’ capital at December 31, 2013.
The impact of the adjustment to correct the error to the specific line items of the financial statements for the year ended December 31, 2012 was as follows:
Restated Balance Sheet Amounts
| As of December 31, 2012 | ||||||||||||
| As Previously Reported | Adjustment | As Revised | ||||||||||
| Lease income receivable | $ | 482,788 | $ | 55,734 | $ | 538,522 | ||||||
| Accounts receivable, CCC, net |
|
| 820,520 |
|
|
| 21,873 |
|
|
| 842,393 |
|
| Total assets | 9,478,610 | 77,607 | 9,556,217 | |||||||||
| Unearned lease income |
|
| 280,591 |
|
|
| (7,291 | 273,300 |
| |||
| Total liabilities |
|
| 968,863 |
|
|
| (7,291 | ) |
|
| 961,572 |
|
| Limited partners’ capital | 8,508,747 |
| 84,898 | 8,593,645 |
| |||||||
| Total partners’ capital | 8,509,747 | 84,898 | 8,594,645 | |||||||||
| Total liabilities and partners’ capital | 9,478,610 | 77,607 | 9,556,217 | |||||||||
Restated Statement of Operations Amounts
| Year Ended December 31, 2012 |
| ||||||||||||||||||||||||||
| As Previously Reported | Adjustment | As Revised |
| ||||||||||||||||||||||||
| Lease revenue | $ | 6,371,220 | $ | 84,898 | $ | 6,456,118 |
| ||||||||||||||||||||
| Net loss | (368,528) | 84,898 | (283,630) |
| |||||||||||||||||||||||
| Net loss allocated to Limited Partnership Unit |
| $ | (0.22) |
|
| $ | 0.04 |
|
| $ | (0.18) |
|
| ||||||||||||||