(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) The opening inventory should be included in the current year’s income statement at the corrected figure, and the openingbalance of retained profit reduced by $100,000. The $100,000 reduction will appear in the statement of changes in equity.(IAS8 Acco
