True or false

1) Prior Period items are income or expenses, which arise, in current period as a result of error or omission in the preparation of financial statement of one or more prior periods.

Vijay K

CA Inter

★ 9K+

02-Dec-22 21:46

1) It should be shown separately because it is not in the normal course of business. If we didn't show this prior period items separately. Because it will create some impact on the net profit or net loss of the firm which leads to some false representation. So the answer is false.

Vijay K

CA Inter

★ 9K+

02-Dec-22 21:50

Prior Period Items should be separately disclosed in the current statement of profit and loss together with their nature and amount in a manner that their impact on current profit or loss can be perceived.

Gaurav Choubey

CA Foundation

★ 1K+

03-Dec-22 13:04

Net income is determined by preparing income and expenditure in case of persons practicing vocation.

Gaurav Choubey

CA Foundation

★ 1K+

03-Dec-22 13:04