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Two questions from Toogood (6/07)

((deleted)13y ago
Dear Mike,

It's said that "If the revenue for the previous year was overstated, the correction will affect the profit for the year, the assets in SoFP and the ret'd ears for the comparative period." I can't see in what way it will affect assets. Would you please kindly help advise.

And unfortunately, I still believe the statement below is true, even if I've examined the answer very carefully.

Statement is "When the revised earnings figure for the year ended 31/03/06 is divided by the weighted average number of shares in issue during that year, it should agree with the comparative eps figure (ie for the year ended 31/03/06) reported in the financial statements for the year ended 31/03/07."

Thank you very much!
MikeLittleMikeLittleTutor13y ago#1
Have I ever disagreed with your second comment?

Re your first comment, if the retained earnings figure on the Statement of Financial Position is being restated, you will need to restate another figure on the Statement of Financial Position - otherwise it will no longer balance.

Now, what do you want to do, decrease an asset? Which one? Increase a liability? Which one?

It's up to you!
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