adjustments to profits question : help

Please do not simply set me test questions and expect an answer!! You must have an answer in the same book in which you found the question. Ask about whatever it is in the answer that you are not clear about and then I will help you :-) Since the inventory was not received until after the 31 December, it should not have been included in the financial statements for 30 December 20X3, and this therefore needs adjusting for. Have you watched my free lectures on adjustments to profit? The lectures are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.

I'm sorry for that sir, yes i have watched your all lectures of F3 the answer in the revision kit says, Total assets (SOFP) : $600,000 Profit for the year : $100,000 My questions are 1)so the profit reduces bcz closing inventory decreases by 50,000 therefore cost of sales increases therefore the profit decreases by 50,000 , is that correct ? 2) Not including the inventory that is received after the reporting date, does this also relate to the non adjusting and adjusting events after the reporting period ?

1. Yes, that is correct :-) 2. No. The statements should show the position as at the reporting date. Since the inventory had not been received at the reporting date it should not have been included. Adjusting and non-adjusting events relates to information after the reporting date that affects the value of things as at the reporting date, which is not the same thing.

thank you i understood :) I have my F3 exam on 17th jan, do you have any tips for me as i'm giving CBE bcz the revision kit questions do not really match the format of CBU questions.

I don't know which revision kit you are using, but certainly the current edition of the BPP Revision Kit has plenty of CBE type questions. All you can do is keep practicing - the format of the question does not matter so much because the level of difficulty remains the same.