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Hello Tutor,
I have a little confusion in understanding the (b) part. What does it mean when it says if the error occurred before the ”earliest” prior period??
The IAS 8 says, correction in prior period errors should be applied by :
(a) restating the comparative amounts for the prior period(s) presented in which the
error occurred, or(b) if the error occurred before the earliest prior period presented, restating the
opening balances of assets, liabilities and equity for the earliest prior period
presented.Thank you.
If I am presenting accounts for 2021, with comparatives shown for 2020, and there was an error in 2018…………..
I would need to restate 2020 and 2021 and show the PPA as an adjustment to brought forward RE in the 2020 and 2021 SOCIE.
Calculations for PPA are more likely to come up in FR.
Okay. Just one more clarification, please. In your example prior period is 2020 and before the earliest prior period is 2018? We don’t need to correct 2018 accounts?
Thanks.
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