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Sir I have found the word ‘Allocation’ as an assertion on the following:
ACCA Kaplan Study Text 2016, Chapter 11-Evidence, Page Number-290.
In the diagrammatic presentation, it can be seen written as:
Transactions & Events:
1. Occurrence
2. Completeness
3. Accuracy
4. Cut-Off
5. Classification
6. PresentationAccount Balances:
1. Existence
2. Rights & Obligations
3. Completeness
4. Accuracy, Valuation and Allocation
5. Classification
6. PresentationI thought ‘Allocation’ and ‘Classification’ are the same. But why are they given in two different bullet points??
Check out this link
And here’s an extract that MAY save you from reading the entire article:
ACCOUNT BALANCE ASSERTIONS
(i) Existence
(ii) Rights and obligations
(iii) Completeness
(iv) Accuracy, valuation and allocation – assets, liabilities and equity interests have been included in the financial statements at appropriate amounts and any resulting valuation or allocation adjustments have been appropriately recorded and related disclosures have been appropriately measured and described.
The reference to allocation refers to matters such as the inclusion of appropriate overhead amounts into inventory valuation.
(v) Classification – assets, liabilities and equity interests have been recorded in the proper accounts.
(vi) Presentation
OK?
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