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I’d really appreciate your time SIR,
The question states it’s year end is 30 Sep, 2008 which were approved on 12 Jan 2009, and issued on 20 Feb, 2009.
a) A credit customer with an outstanding balance at the year-end was declared bankrupt on 20 Jan, 2009.
b) Inventory valued at cost of $800 in the year-end accounts was sold for $650 on 11 Jan, 2009.
Question: Which of the following event will require an adjustment after the reporting period?
I’d really thankful for your answer, SIR!
Item (b) because the inventory should be valued at the lower of cost and NRV.
Surely you must have an answer in the same book in which you found the question (if not then you should be using a Revision Kit from one of the ACCA approved publishers because they have answers and explanation!).
I suggest that you watch my free lectures on IAS 10 because this is explained in the lectures. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.