Is this an prior period item?

Defination of Prior period items Prior period items are those income and expenses which arises in current period as a result of one or more error or omission in one or more past periods. In ur they are not regraded as either error or ommission. Simply it all will be outstanding expenses which is paid in current year. BCS whenever u were availing these benefit expenses for those already arises in past but due to non receiving of bill u were not paid so it is outstanidng and now the same has been paid with due amount.

Please xplain further.....what is term error or ommission???

Because in my opinion client should have passed provisions entries in past period for such o/s on estimation basis.

 

Not to record such amount in past will not amount to an "ommission"???

I am in the opinion that, it should be recorded as prior period expenses....i may be wrong....but let have some more opinion on the same.

As per AS -5 

Prior period item does not include

* Arrer paid

*Correction of Accounting estimates on revision of estimates.

*Assets or liability item that are being adjusted.

Error or omission occures due to mathemetical mistekes in appliying accounting policies, misinterpretation of facts or Oversight.