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the company recorded sales returns in P&L  this year related to sales occurred previous year  ,sales of previous year was correct no mistake.
the company suggest to record this sales returns as an adjustment to the beginning balance of retained earnings this year ,is this treatment correct
in IFRS 9 - Financial Instruments by

1 Answer

0 votes
1st we have to increase the stock of such goods in current yr n such sale return to be treated as prior period item
by Level 4 Member (9.8k points)
edited by
This can not be classified as a prior period item. Prior period items are errors and omissions in preparing financial statements of one or more prior periods. Sales returns in the current year are not errors as such.