If during the year you found that last year's Closing Stock was undervalued wrongly what impacts the change will have.....??
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Effects of change in Opening Stock
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| Originally posted by :Amod Suresh Nandgaonkar | ||
| " | If during the year you found that last year's Closing Stock was undervalued wrongly what impacts the change will have.....?? | " |
its a cliche auditing question for exams.
You have to follow AS-5 on accounting for prior period items.
Just credit the P&L for the undervaluation of last year and debit the opening stock with the actual value.
This is a solved illustration in PCC accounts study material. Its simple. Disclose in the notes and no one will care. No need to qualify the report
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