If during the year you found that last year's Closing Stock was undervalued wrongly what impacts the change will have.....??
If during the year you found that last year's Closing Stock was undervalued wrongly what impacts the change will have.....??
| 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
Aggarwal Sarawagi and Co
New Delhi
CA
View Details
R P S K & Associates
Nashik
CA Inter
View Details
CAclubindia
