Distinguish between Prior period items and extra ordinary items

Auditing and Assurance Revision Questions and Answers

Prior period items and extra ordinary items
Prior period items are incomes or expenses, which arise, in the current period as a result of errors or commissions in the preparation of the financial statements of one or more prior periods. Extraordinary items are incomes or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the enterprise and, therefore, are not expected to recur frequently or regularly.

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