Skip to contentSkip to search
Sign inRegister

ACCA FR · Guided practice (Show me how)

Chapter 9: Accounting policies, changes in accounting estimate and errors (IAS 8)

Correcting a prior period error retrospectively

Error. Ademola Co's statement of profit or loss extract and summarised statement of financial position for the year ended 31 December 2008 ($000):

During 2009 it was discovered that certain non-current assets had been included in the records at 31 December 2008 at $500,000 in excess of their recoverable amount and that this situation was unlikely to change.

Prior to making any adjustment for the above, the results and summarised statement of financial position of Ademola Co for 2009 were ($000):

During 2009 some other items of property had been revalued by $300,000 (included in the above retained earnings figure). Prepare extracts from Ademola Co's financial statements for the year ended 31 December 2009.

  1. (a) Restating 2008

    Calculate Ademola Co's restated profit for the year ended 31 December 2008 and its restated retained earnings at 31 December 2008.

  2. (b) The 2009 figures

    Calculate Ademola Co's non-current assets, revaluation reserve and retained earnings at 31 December 2009 after the prior-period correction.

Opening this exercise…