990 M-2 equivalent?

[ILLMAS]

Does anybody know if there is M-2 equivalent for a 990?  A fellow accountant friend of mine client had a financial audit for 2015 & 2016 after the 990 was prepared.  He is having trouble for 2017, if he keeps the beginning balance (from prior year tax return), then he cannot balance for 2017.  The problem is solved if he uses the audited financial statements balances as of 12/31/17 but then it will not match the tax return that was filed.  Can he just use the new beginning balance or is there another form to reconcile the balance?

 

Thanks

[Gail in Virginia]

If you are doing the full 990, then Part XI on page 12 is the reconciliation.  Line 8 or Line 9 would be the place to put changes to beginning balances that are necessary to reconcile the books, and then they would be explained in Schedule O.  I suspect that if the change is relatively minor, you could get away with changing the beginning balances but I would do it this way so there is a record that it did not reconcile and you are adjusting it, with an explanation if you have one.