30 March 2008
AN AMC Contract for the period of Jan 07 to Dec 07 was taken and the same was expensed out entirely in the previous year and the statutory auditor was unable to recognise it, wherease in the current year the same is recongnised by another auditor, then what will be the accounting treatment for such rectification
04 April 2008
for three months the expense recognised in the current year will be treated as prior period item and remining 9months expensed in current year is correct treatment.the error is due to ommision,so as per as-3 it should be dealt out properly.
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