(c) In August 2004 it was discovered that the inventory at 31 December 2003 had been overstated by $100,000.
(4 marks)
Required:
Advise the directors on the correct treatment of these matters, stating the relevant accounting standard which
justifies your answer in each case.
NOTE: The mark allocation is shown against each of the three matters.
正确答案：
(c)Theopeninginventoryshouldbeincludedinthecurrentyear’sincomestatementatthecorrectedfigureandtheopening
balanceofretainedprofitreducedby$100000The$100000reductionwillappearinthestatementofchangesinequity
(IAS8Accountingpolicieschangesinaccountingestimatesanderrors)
