Stok in trade wrongly considered as fixed asset

This discussion addresses the incorrect classification of land purchased as stock in trade, which was wrongly shown as a fixed asset in FY 2018-19. The core issue is how to rectify this accounting error and present the land as inventory. While previous year's financials cannot be revised, the recommended approach involves disclosing the change in the current financial year's notes to accounts, explaining the reclassification from fixed asset to stock in trade. Tax implications and specific accounting standards like AS 5 and AS 2 are also considered, with advice to consult tax specialists for clarity on tax laws and adjustments.