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Q: reperforming inventory ageing analysis to ensure what ? and how does it is operated ?
Aged analysis are used to detect receivables that are old and therefore less likely to be paid and inventory that has been around a long time and therefore less likely to sell for more than cost.
Valuation of receivables and inventory make use of aged analyses. If the aged analyses have been incorrectly prepared then this might lead to incorrect valuations. Reperformance is evidence that the aged analyses are correct and can give a more reliable indication of asset values.
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