Page 247 - F1 Integrated Workbook STUDENT 2018
P. 247
IAS 2, 8, 10, 34 and IFRS 8
Notes to financial statements (extract)
Some products that had been sold during 20X0 had been incorrectly included
in inventory at the year-end 31 December 20X0 amounting to $6,500. The
financial statements for the year ending 31 December 20X0 have been
restated to correct this error.
Explanatory note:
The correction is made as follows:
Dr cost of sales (closing inventory) $6,500
Cr inventory $6,500
This happens in the 20X0 accounts and has a knock-on effect on the opening
inventory of 20X1.
The adjustment to 20X1 opening retained earnings is net of tax.
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