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Hi Sir,
(q 233 Gooseberry in Kaplan KIT2020-2021)The question is asking the substantive test of the directors’ bonus which was paid in Feb 20×8 and the current year end is 31 Jan 20×8
Here I want to ask do we have to concentrate on the payment of the bonus even though it happened in the post year end in Feb
If we just concentrate on the accrual, recalculation, disclosure and so on, of the bonus which must have been done during the year will that be enough
What assertion we will have from checking the payment of the bonus after the year end.
Thanks,
If you browse “Read the mind of an AA marker” you should find a pdf of an article which deals comprehensively with this question – and what is needed to earn 5 marks.
To look at after-date payments – any after-date payments – is a test for completeness of recording liabilities at the reporting date.
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