DharaDhara asked 1 year ago

Sir in SA 710 if finding misstatements in last year in depreciation and management agree to resolve it then the accounting effect would be retrospectively or prospectively?  And the answer to the above question would be for both approaches i.e corresponding figure approach and comparitive FST approach?

1 Answers
RaviRavi Staff answered 1 year ago

This is not change in accounting policy or change in estimate issue. It is a mistake, it will be rectified in current year, missed entries of past years will be passed as it is and then current year depreciation will be computed.
Approaches specified are approaches towards reporting , that is drafting audit report. Misstatement rectification will be as per accounts and same in both approaches.
audit reporting in both approaches may differ not accounting

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