Explain the Difference Between Type 1 and Type 2 Subsequent

question 31

Essay

Explain the difference between type 1 and type 2 subsequent events and provide examplof each type of event.

Identify the effects of inventory valuation errors on financial statements.

Understand the implications of failing to recognize or incorrectly recognizing revenue and expenses.

Understand error detection and correction processes in financial statements.

Distinguish between GAAP and IFRS accounting standards and their requirements for error corrections and retrospective restatements.