What must be disclosed if receivables and payables do not crossfoot in financial statements?

When receivables and payables do not crossfoot in financial statements, it is essential to disclose the reason for the discrepancy. This disclosure helps to provide clarity and transparency to users of the financial statements, allowing them to understand why there is a difference between these figures. Financial statements are intended to give a true and fair view of an entity's financial position, and unexplained discrepancies can lead to confusion or mistrust among stakeholders.

Including the reason for the discrepancy indicates that the entity is maintaining good governance and is accountable for its financial reporting. It reflects a commitment to accuracy and integrity in financial reporting, which is crucial for maintaining stakeholder confidence and adhering to accounting standards and regulations.

Disclosing just the value of the discrepancy, making adjustments, or stating that no disclosure is required, would not sufficiently inform users about the underlying issues that led to the inconsistency. Understanding the reasons behind discrepancies is vital for stakeholders to make informed decisions based on the financial information provided.