25 January 2011
Prior perid item means expenses debited to profit & loss account which pertains to last Year. If a person inadvertantly forget to debit in the account the expenses of that year and debit that expenses in the next year , it is called prior perid item.
27 January 2011
If due to any error or omission if a person forget to account any expenses (which pertains to P.Y) in the previous year and accounts the same in current year such expenses are called prior period items & separate disclosure is required for such items in the Financial Statements
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