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Forensic Accounting

recording sales returns this year related to saled previous year IFRS 18


the company recorded sales returns in P&L  this year related to sales occurred previous year  ,sales of previous year was correct no mistake.
the company suggest to record this sales returns as an adjustment to the beginning balance of retained earnings this year ,is this treatment correct

asked Mar 14 in IFRS 9 - Financial Instruments by anonymous

1 Answer

0 votes
1st we have to increase the stock of such goods in current yr n such sale return to be treated as prior period item
answered Mar 15 by veshmalahotra Level 3 Member (7,480 points)
edited Mar 16 by Mysio
This can not be classified as a prior period item. Prior period items are errors and omissions in preparing financial statements of one or more prior periods. Sales returns in the current year are not errors as such.



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