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Kim Smith.
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toushiga
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Dec2015 examiner report
extract:
“many candidates misunderstood the implication of the inventory being counted before the year-end and thought the problem was the lack of staff for the count as opposed to the roll forward adjustments
which would be necessary.”what is roll forward adjustment?
Kim Smith
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Let’s say the year end is 31 December and inventory is counted on 27 Dec:
Product A – 100 units
Product B – 50 units
Product C – 130 units
etcManagement would then need to roll-forward each of the these quantities to arrive at the year-end quantities – i.e. adding any quantities received and deducting any quantities sold. The adjustments are therefore for goods received and sold.
toushiga
Kim SmithViewing 2 posts - 1 through 2 (of 2 total)
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