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Hello Thanks for the help always.
My question is on how to arrive at the value of receivables using modified historical convention when given the receivables figure at the year end, provisions for receivables balance b/d and closing the closing provision. ThanksI’m not even sure that this is in the syllabus!
However, given that receivables are always stated at the lower of cost and net realisable value, the closing figure for receivables under the modified historical coast convention is surely the same figure as calculated under the traditional historical cost convention
Modifications are surely aimed at bringing long term assets and liabilities to current values and less concerned with the current assets and current liabilities
OK?
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