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Hi Mike,
When calculating the costs of sales (in working (i)) ACCA have made a couple of adjustments for events that occured after year-end:
1. ACCA increased the cost of sales by the deliveries after year end ($2700) – please could you tell me why these deliveries shouldn’t be ignored?
2. ACCA decreased the costs of sales by cost of goods sold after year end ($6000) – again as this happened after year end please could you tell me why the $6000 shouldn’t just be ignored?
Thank you,
Dan
I don’t recognise the example you are quoting from but if the delivery was made before the year end but the goods not received until after, then an adjustment needs to be made to accelerate the goods into the receiving company.
Similarly, if the transaction was after the year end, then no adjustment should be made.
Does that answer it?
sorry please could you tell me the difference between a delivery date and a goods received date?
No! In my vocabulary, the date of the delivery is the same as the date of the goods being received.
I suppose, technically, that if we are to apply subtle distinctions as may be found in F4 ( “title to the goods passes when the buyer has notice of that fact” or “ownership is transferred as the goods pass the ship’s rail” ) then yes, delivery date ( the passing of ownership ) will be different from the date of the goods being received.
I’m not sure I would expect that sort of nuance from Steve Scott
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