Agree with Johnny its about materiality. If you pop them in the new year, date on 1st day of new period, but add a note as to when they are actually dated.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I'm always around, just not getting much chance to post at the moment (you might notice that the spam and it's purveyors still disappear though).
yes, nice to see that people have been taking notes, lol.
The commonly accepted definitions of financial statement materialarity are exactly as Joanne states (#1) however, just to add to the figures that materialarity may be individually or in agregate.
So for example, a single new low level printer may be immaterial but cheap new printers for every desk in an office may be very material when considered in agregate. Even if purchased seperately over the period they all belong to the same class of asset which would make their inclusion material to the financial statements.
Also an item that turns a profit to a loss (or vice versa) may always be considered to be material to the financial statements (qualitative rather than necessarily quantitative materialarity).
The percentages given are not set in stone (you will not find them defined in statute) and the real definition of materialarity should be considered as an item is material if its ommission or mistatement may influence the financial or other decisions of a reasonably informed third party (thats defined in ISA's 315 (identifying ans assessing the risk of material misstatement through knowledge of the entity and its environment) and 320 (Materialarity)).
Consider the three tests as preliminary guidance when forming your opinion of materialarity but do not depend upon them as a defence.
HTH,
Shaun.
#1 emphasis that as Joanne states all three tests to be passed or none of them are.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
We are trying to be good pupils arent we! Do we get gold stars, or just silver for not including the other detail?
Thanks for the added info Shaun.
Lol Joanne, your original post has now been marked.
Now don't tell me I've got to go back through the site marking everyone's comments... Not least as I fear the number of C minus's and "must try harders" that I may need to award myself for some of my own past efforts!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Ahh thank you Shaun, no dont go sneaking it off again, lol.
Yes I think you should review the whole site! Actually I wonder how many posts there have been in totality on here? No - just a thought, dont go spending all evening counting that lot up.
I reckon I would be getting a few must try harder/blackboard rubbers thrown at me for a few of my posts.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
So far, excluding the spam that disappears pretty quickly there have be 95,387 posts spread across 14,181 threads... Apparently a couple of them even mentioned bookkeeping... But we cleared those one's up as spam so don't bother looking for them.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Flippin heck. Challenge accepted and rapidly dealt with. Note to self - must think of harder questions to ask of the moderator! Wow - wont be long before we get to the 100,000 mark, especially if we talk a pile of drivel on the end of all the threads.
I was mid reading a spam one the other day when it disappeared from in front of my eyes - knew the elves had been at it again!
Thanks for the info
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ah, you come for the bookkeeping but stay for the banter / drivel / waffle.
I did notice a trend for a while that threads would start on one subject, move to banter and then onto a completely different subject.
Anyone who searches this site just using thread titles is definitely missing half of the really good threads out there.
... And you have to be fast with those spam emails as even when I'm busy so not actively viewing threads my network of elves are generally on the ball.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
