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August 27, 2016 at 11:04 am
how did they get 1000 prepayment in qn 1of 4 above
August 27, 2016 at 3:13 pm
3000/qtr =1000/month. Jan 2015 has been paid in advance (prepayment).
June 27, 2016 at 8:01 am
How is accuracy assertion not related to accruals and prepayments?
and how is Valuation assertion related to accruals and prepayments?
June 27, 2016 at 8:54 am
Accruals and prepayments appear on the SOFP – they are balances. ISA 500 paragraph 17 (b) states that the assertions relating to balances are:
Rights and obligations
Valuation and allocation
Accuracy isn’t there (I have no idea why!)
March 4, 2017 at 9:00 pm
In the notes, it gives the following assertions for account balance (SOFP)
Rights & Obligations
Accuracy Valuation Allocation
Is this an error? are the only assertions for SOFP the ones you have mentioned above?
June 18, 2017 at 12:07 pm
i have the same question as Anna. Please advise
June 18, 2017 at 9:37 pm
The notes are right. The ISA changed since 2016 replies and accuracy is now a SOFP/account balance assertion. We seem to have missed updating the question in the quiz. We will correct that soon.
Sorry for the confusion.
October 25, 2015 at 6:37 am
‘Which of the following effects will omitting a year-end accrual cause?’
could you, please, expound it a little bit? I can’t get the meaning
October 25, 2015 at 8:43 am
If you leave out an accrual, what errors are caused?
October 25, 2015 at 10:01 am
wrong allocation of transactions?
October 25, 2015 at 11:45 am
I mean, wrong time allocation.
aaah, I see now, you mean when it’s completely omitted.
resolved then, no questions 🙂
May 28, 2015 at 6:49 pm
Q2 CH19. How does the hourly rate of labour provide evidence about the cost of a unit of inventory?
May 28, 2015 at 7:05 pm
It’s because we are dealing with a manufacturing industry. The cost of manufactured goos includes the costs of material costs plus conversIOn costs (factory labour plus factory overheads).
April 29, 2015 at 10:29 pm
I find CH19 Q4 a bit confusing in part mentioning cost of DISPOSING of the goods. Maybe it is my poor English but I associate “disposal of goods” to a physical disposal, getting rid of (due to obsolescence)… But I believe here it was meant as cost of despatching, correct?
Many thanks in advance
April 30, 2015 at 6:43 am
Here it means the costs associated with packing and delivering them etc. It might be better to describe this as the cost of delivering the goods.
May 4, 2015 at 9:22 am
March 8, 2015 at 3:40 pm
Thank you very much. Timely guidance. Well understood.
March 8, 2015 at 3:34 pm
Inventory should be valued at the lower of cost and net realisable value.
NRV = final or estimated selling price less costs of completion and sale
Here, NRV = 4,800 (selling price) less 250 (cost of selling the item) = 4,550.
March 8, 2015 at 3:29 pm
Thank you for your support. Chapter 19 question four. Kindly explain how the answer is arriving at $4550
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