03-16-2009, 09:01 AM
Thanks Kamran bhai for your prompt reply, but I am still confused as my query was pertain to component number 6 only, which is
<b>6. When an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it must also present a statement of financial position as at the beginning of the earliest comparative period.</b>
I want to understand it by any illustrative example like if a company revise its 2 policies A and B in year 2008 and the retrospective effect of two policies change financials, Policy A had been applying since June 2006 and policy B since August 2005.
Now in the light of above component 6, what will be the date for which the comparative Statement of Financial Position will be made.
Kind Regards,
Muhammad Rafay
<b>6. When an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements, it must also present a statement of financial position as at the beginning of the earliest comparative period.</b>
I want to understand it by any illustrative example like if a company revise its 2 policies A and B in year 2008 and the retrospective effect of two policies change financials, Policy A had been applying since June 2006 and policy B since August 2005.
Now in the light of above component 6, what will be the date for which the comparative Statement of Financial Position will be made.
Kind Regards,
Muhammad Rafay
