The following items appeared on the list of balances of P Ltd at 31 December 2016:

	Dr	Cr
	$	$
Opening inventory	3 850 000
Accounts receivable ledger balances	2 980 000	1 970
Accounts payable ledger balances	14 300	1 210 400
Prepayments	770 000
Cash at bank A	940 000
Overdraft at bank B		360 000

The closing inventory amounted to $4 190 000, before allowing for the adjustments required by items listed below.

In the course of preparing the financial statements at 31 December 2016, the need for a number of adjustments emerged as detailed below:

1. The opening inventory was found to have been overstated by $418 000 as a result of calculation errors on inventory sheets.
2. Some items included in closing inventory at cost of $16 000 were found to be defective and were sold after the end of the reporting period for $10 400. Selling costs amounted to $600.
3. Goods with a sales value of $88 000 were in the hands of customers at 31 December 2016 on a sale or return basis. The goods had been treated as sold in the records and the full sales value of $88 000 had been included in trade receivables. After the reporting period the goods were returned in good condition. The cost of the goods was $66 000.
4. Accounts receivable amounting to $92 000 are to be written off.
5. The allowance for doubtful debts is to be set up for 5% of the accounts receivable total.
6. The sales manager is entitled, from 1 January 2016, to a commission of 2% of the company’s profit after charging that commission. The profit amounted to $1 101 600 before including the commission, and after adjustments for items a) to e) above. The manager has already received $25 000 on account of commission due during the year ended 31 December 2016.

Required

(i) Explain how adjustment should be made for the error in the opening inventory, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimate and Errors. Assume the error is material

(ii) State two disclosures required by IAS 8 Accounting Policies, Changes in Accounting Estimate and Errors in the financial statements at 31 December 2016 

(ii) Show how the final figures for current assets should be presented in the statement of financial position. (Show all your workings)