RE: [OPE] replacement cost and historical cost (again)

From: GERALD LEVY <gerald_a_levy@msn.com>
Date: Sun Sep 06 2009 - 11:00:25 EDT

>
> "FRS3 ...
> FRS3 states that a prior period adjustment is required to correct a
> fundamental error or change in accounting policy. A fundamental error is
> classified as an error which is so significant that the truth and
> fairness of the financial statements is not achieved."
> http://www.accountingweb.co.uk/item/186447

 
Hi Phil:
 
Unless I am mistaken, the above is intended to deal with such things
as mathematical errors on the part of the accountants - literally
adding up things wrongly. Is your interpretation of accounting
conventions actually born out by the experience of accountants? For example,
have accountants themselves used FRS3 to adjust the valuation of
fixed capital due to premature and unanticipated obsolescence? Just
asking.
 
 
In solidarity, Jerry
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Received on Sun Sep 6 11:04:28 2009

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