This has been bugging me since I started AAT...

swirlywirly

When you're revising or whatever and going through practice questions you sometimes come across things like "balance sheet at 31st December 20x7"

What is the deal with the x replacing the 0?? I really don't see the point at all!

Can anyone shed any light?

jilt

swirlywirly wrote: »

When you're revising or whatever and going through practice questions you sometimes come across things like "balance sheet at 31st December 20x7"

What is the deal with the x replacing the 0?? I really don't see the point at all!

Can anyone shed any light?

Nope



Sorry couldn't resist!

midnightmyst

Hi,
They do that so the 'x' can be replaced with an 0, 1, 2, as it won't always be 2009. I hope this answers your question

mark130273

midnightmyst wrote: »

Hi,
They do that so the 'x' can be replaced with an 0, 1, 2, as it won't always be 2009. I hope this answers your question

its because if they ever changed the money unit from 100p into the pound in 2015, then any paper from before that date you would have to rewrite with the correct amounts but if the dates are interchangeable then this would allow for the adjusted amount.....

thats what i think !

Bookworm55

It's just one of those odd conventions. A lot of textbooks do it.

I think it's so when you read the book in 2015 you read 20X1 as 2011, not 2001 and think "wow, this textbook is really old". I'm not sure why as most textbooks wouldn't be in use long enough for that to matter.

And the year you're doing the accounts for almost never actually matters on a practice question except for tax purposes. (however, "last year" "next year" and "this year" matters)