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IAS 10

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › IAS 10

Viewing 2 posts - 1 through 2 (of 2 total)
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  • August 16, 2018 at 7:29 am #468064
    alikhakar
    Participant
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    Why the sale of inventory below carrying value is considered as an adjusting event ..when the sale is taking place in next year the loss should be attributed to next year why it is an adjusting event` ?
    Thanks

    August 17, 2018 at 2:40 pm #468220
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    The sale gives information of the value of inventory that was held at the reporting date. If it has been sold below cost now then it would have been sold at below cost on the reporting date too, hence the adjustment.

    Thanks

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