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IAS 8 states that if the adjustment to opening retained earnings cannot be reasonably determined, the change should be adjusted prospectively, i.e, included in the current period’s statement of profit or loss.
-What does ‘opening retained earnings cannot be reasonably determined’ mean here?
It means that we do not have the information available from the prior year to make the adjustment in the statement of changes in equity, so therefore we just make an adjustment in the current year through retained earnings/profit and loss.
I’d try not to get too involved within the standards as you will only end up asking further questions like this that aren’t really going to be seen in the exam. Remember to focus on the essentials within the exam and in your studies.
what is the essential chris? Is it the 16 standards or 25 standards in the textbook. I read the bpp text book and done the questions at the back but cant seem to get a solid grip on the whole f7 yet as i quite often discover new things and contradictory things so it overlaps my previous understanding. The more i read and do questions the more i find things that i dont know.
So the gist is basically.
To cover consol sofp and consol sopl, cashflow, single entity, associates, and standards. I dont know if im being frantic that exam is in 52 days more.
The basics are what are in the class notes. If you go into the fine detail within the standards then you will get confused, so I’d recommend that you do not do this, unless you want to make life more difficult over the next 52 days.
Oh okay thanks very much. i think ive stressed myself out a lot.
Try not to get yourself too stressed by it all, it is a tough exam but from what I’ve seen from your forum questions your knowledge is excellent and you just need to focus on answering the questions. Practice! Practice! Practice!