In your role as controller, you are responsible for Seneca. As identified by management, Seneca's standard procedures for preparing its financial statements require you to evaluate certain events after the reporting period. With Seneca's periodic inventory system, the inventory records have already been updated to reflect the actual count of inventory.

During the year 2021, On account of a contractor, 162 computer Screens were sold. During the month of December, these were installed in a financial company for people who work from home. When Seneca's employees shipped Touch Screen instead of non-touch screens, the contractor was surprised to find out that the Touch Screen would be more expensive. Only the non-touch screens were billed to the contractor, and the error wasn't noticed until January 2022.

January 2022, a price was agreed to by the contractor and Seneca at a midpoint between the non-touch screens and touch screens; due to the price differential, the receivable was adjusted at that time. The price of non-touch screens is $540 per screen, while the touch screen is $1,455 per screen.

apply IFRS

write, issue analysis and recommendation