- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
I’m having problem with the Chapter9 (eg 1) prior period error Q [pg 40). In this Q it states that $500,000 in excess of their recoverable amount BUT why it is has to do with the COST of year 2008 as it was added back when restated?
Can anybody tell me why?
Hi,
It is because it says that the amounts were included in the December 2008 accounts. To get them correct we will need to adjust it in that year first.
Thanks
Thanks for the reply.
Please tell me this since the NCA of $500,000 was found in 2009 that was a previous year error included in the records of 2008, therefore the $500,000 needs to be added back in 2008 cost of sales but why the $500,000 was not deducted from the 2009 cost of sales as it was from the error that happened in 2008 and was already in the 2009 cost of sales.
This is confusing me!
Hope that you’ll clear this up!
- You must be logged in to reply to this topic.