Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › IAS 10
- This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.
- April 24, 2023 at 5:57 pm #683479sguhaParticipant
- Topics: 64
- Replies: 42
a/c period end on 31 dec,2008…..statements got finalized on 31 march 2009
1. there is inventory valued at 5000 at 31 dec,2008
an event happened on 1 feb,2009, the goods got damaged a bit and its NRV is 3000 now
will it be adjustment event or non-adjustment. I think its non-adjustment cause till 31 Dec goods were not damaged
2. what if value of land fell after reporting date, is it non-adjustment event
3. goods send to customer on sale or return basis on 31 dec,2008
we got confirmation of sales on 5th jan,2009, so the sales will be recorded for 2008 yr period in which case it will be adjusting entry or for 2009 period in which it will be non-adjustment entry
4. customer owing us money died on 1 Feb 2009 before financial statement got finalized, in this case
is it non-adjustment or adjustment event.April 25, 2023 at 8:18 pm #683534John MoffatKeymaster
- Topics: 56
- Replies: 52395
1. It is a non-adjusting event and if material (which is obviously unlikely in this case) it will be disclosed by way of a note.
2. It is a non-adjusting event.
3. The sale is only recorded when the customer confirms they are buying the goods.
4. It is an adjusting event.
Have you watched my free lectures on all of this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
- You must be logged in to reply to this topic.