Do you show advance payments to suppliers as debtors or as the asset they will eventually acquire? Maybe I am having a senior moment as I thought these must be shown as debtors - technically you are owed the money back (by the supplier) until they give you what you paid for.
I'm talking to someone who is putting an advance payment in stock because that's what is going to be acquired, but we haven't acquired it yet! There's no asset to back up any entry in stock records and I can't see how I can validly show a value in stock at year end for goods we do not possess.
Where would I find something in accounting standards to back up the right answer?