03 November 2011
Prior Period item is nothing but any transaction pertaining to previous accounting period for which accounting is being done in the current accounting period.For accounting these items AS4 has to be complied with.
14 May 2012
As per AS 5, Prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.
For example, expense not booked or income not booked.
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