[Pranathi]

According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, how
should a material error in the previous financial reporting period be accounted for in the
current period?
A) By making an adjustment in the financial statements of the current period through the
statement of profit or loss, and disclosing the nature of the error in a note.
B) By making an adjustment in the financial statements of the current period as a
movement on reserves, and disclosing the nature of the error in a note.
C) By restating the comparative amounts for the previous period at their correct value,
and disclosing the nature of the error in a note.
D) By restating the comparative amounts for the previous period at their correct value,
but without the requirement for a disclosure of the nature of the error in a note

Sir, the answer is C. Can you please explain

[Author]

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