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TPs Substantive procedure
Assume 31 December reporting date:
$1,000 paid on 3rd January - why? Either already owed at 31 Dec - in which case it must be recorded as a liability at the reporting date OR it is a "next year" expense.
After-date payments only reduce the liability after the reporting date - they don't change the reported position as at the reporting date.
Yes you could expand on "correct period" - e.g. "in 20X0" but take care with use of "current period" - in AUDIT context "current" generally means the year covered by the financial statements.
Yes your doubt 2 is fine.
Perhaps you need to look back to FA/F3 and remind yourself of some double-entry bookkeeping.
If $1,000 (in my example) is included in y/e TP, double entry (ALREADY made) was:
Dr Expense/asset and Cr TP.
If $1,000 not in y/e TP but should be accrued, the y/e adjustment is:
Dr Expense/asset and Cr Accrual.
AFTER the y/e, the D/E arising from the cashbook entry is then:
Dr TP/accrual and Cr Cash.
Can you see that "and any after date payments do not reduce current period TPs balance and accruals listing" is meaningless? It is simply not possible.
