Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Question #29 from question bank of Study text valid from Sept 19 to June 2020
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- October 30, 2019 at 8:19 am #551201
‘Existence is an assertion about account balances at the period end.’
Is this statement true or false?As per answer bank, the above statement is true. How? What I understand is that this statement represents Accuracy, Valuation & Allocation assertion. Am I right?
October 30, 2019 at 9:19 am #551213See Chapter 16 of the notes – page 84 – existence is a separate assertion. It means, for example, that an item of equipment physically exists at the reporting date – this is quite separate from the assertion that it’s measurement in the SoFP (“valuation”) is appropriate and that depreciation has been appropriately allocated.
October 30, 2019 at 11:32 am #551232So, the statement “Existence is an assertion about account balances at the period end” is true?
October 30, 2019 at 12:03 pm #551233Yes – if you download the notes the pdf can be searched – on page 84:
“These assertions relate to the PERIOD END:
? Existence – assets, liabilities and equity interests exist.
…”November 1, 2019 at 8:09 am #551336Thank You
November 1, 2019 at 8:53 am #551340You’re welcome!
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