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Subsequent Events

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Subsequent Events

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by Ken Garrett.
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  • August 8, 2017 at 11:26 pm #401087
    ngaryitess
    Participant
    • Topics: 29
    • Replies: 40
    • ☆☆

    Hello
    Let us say an adjusting event requires a write-off of the inventory balance by $200,000. If the writeoff is not material with respect to PBT materiality level
    but it becomes material based on the revenue materiality level:-

    Do you then amend the financial statements?

    August 9, 2017 at 7:04 am #401099
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10607
    • ☆☆☆☆☆

    If a matter is judged material under any criteria, the directors should alter the FS (auditors do not alter FS). If the F S are not altered appropriately the audit opinion will have to be modified.

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