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Query w.r.t AS 4
A cashier embezzled cash amounting to Rs 700000 in April, 2020 This has to be adjusted in the books for year ended 31st March, 2019, as per solution. My question is, what was the existing condition as on 31st March, 2019? Is it that embezzlement is an ordinary activity and is expected to happen. Is this the condition?
Answers (8)
Best Answer
But Sir, management has failed to notice the embezzlement in prior period. Error, as per AS 5 in relation to PP items, may be a result of oversight. So why shouldnt this be treated as PPI in current year's P/L?
Identified before approval of financial statements. So it will be adjusted as per AS-4.
Oh, okay.
But Sir, management has failed to notice the embezzlement in prior period. Error, as per AS 5 in relation to PP items, may be a result of oversight. So why shouldnt this be treated as PPI in current year's P/L?
Identified before approval of financial statements. So it will be adjusted as per AS-4.
All clear. Thanks to you Sir :)