15. During 20X7, Global discovered that certain items had been included in inventory at 31December 20X6, valued at RM4.2 million, which had in fact been sold before the year end.The following figures for 20X6 (as reported) and 20X7 (draft) are available.20X620X7 (draft)RM'000RM'000Sales67,20047,400(34,570)(55,800)11,400Cost of goods soldProfit before taxation12,830(3,400)(3,880)8,950Income taxesProfit for the year8,000Reatained earnings at 1 January 20X6 were RM13 million. The cost of goods sold for 20X7includes the RM4.2 million error in opening inventory. The income tax rate was 30% for20X6 and 20X7. No dividends have been declared or paid.Required:Discuss the proper accounting treatment of the above situation in accordance withi.MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors.Show the Extract Statement of Profit or Loss, Extract Statement of Changes in Equityand Extract Statement of Financial Position for 20X7 with the 20X6 comparative.i.

Accounting standards can be defined as the general guidelines and policies being used by the…

Required: Discuss the proper accounting treatment of the above situation in accordance with i. MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Show the Extract Statement of Profit or Loss, Extract Statement of Changes in Equity and Extract Statement of Financial Position for 20X7 with the 20X6 comparative. ii.

Required: Discuss the proper accounting treatment of the above situation in accordance with i. MFRS 108 Accounting Policies, Changes in Accounting Estimates and Errors. Show the Extract Statement of Profit or Loss, Extract Statement of Changes in Equity and Extract Statement of Financial Position for 20X7 with the 20X6 comparative. ii.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I. Using the following table, indicate the effect of the following errors of omission on the financial statement classifications listed. If as a result of the omission a classification is overstated, place a (+) in the appropriate space. An understatement is to be indicated by a (-). If the omission has no effect on the classification, place a (0) in the appropriate cell. . a. Payment for repairs erroneously debited to Building account. b. Recorded collection of an account receivable by debiting Cash and crediting revenue асcount. c. Depreciation for the month was omitted. d. Recorded twice an acquisition of office equipment on account. e. Rendered services for cash but made no record of the transaction. Effect of Omission Classification a b. e Revenues Expenses Total Assets Total Liabilities Owner's Equity
72. The effect of which is recognized directly in equity rather than in surplus or deficit Correction of current period error Effect of changes in accounting estimates Gair or losses on remeasuring available for sale financial assets All of these
can you please explain this and provide an example its for homework I am struggling
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