Business – 10.1 Financial statements – Statement of financial position | e-Consult
10.1 Financial statements – Statement of financial position (1 questions)
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An amendment to the statement of financial position is required when the information originally presented is inaccurate, incomplete, or no longer reflects the true financial position of the business. Common reasons include:
- Discovery of accounting errors (e.g., mis‑valuation of inventory or incorrect depreciation).
- Changes in accounting policies or the adoption of new standards that affect asset or liability classification.
- Events occurring after the reporting date that provide new information about the existence or value of assets or liabilities (e.g., a lawsuit settlement).