alleryStart learning →Prior period items under AS 5 arise from what?
AErrors in earlier statements
BChanges in estimates made
CChanges in policy adopted
DEvents outside normal trade
Answer & Solution
Correct answer: A. Errors in earlier statements
They are income or expenses appearing now because earlier financial statements contained errors or omissions.
Keep practising AS 5 Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
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