Retrospective restatement
Retrospective restatement corrects the recognition, measurement and disclosure of amounts in prior-period financial statements as if a prior-period error had never occurred, subject to applicable standards and practicability requirements. Changes in accounting policies are generally accounted for retrospectively where required, which is related but distinct.
Worked example
A material prior-year calculation error is corrected by restating comparative amounts and relevant opening balances as required.
Common mistake
Do not retrospectively restate for every change in accounting estimate; changes in estimates are generally accounted for prospectively.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Supporting | September 2026–June 2027 |