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HI Sir, just watched the lectures on chapter 9, example 3 and example 1 is calculated in different way? like for example 1 you re calculated and adj prior year statements as well as the statement of change in equity, however in example 3 you just adj the retained earnings figure in a statement of change in equity. im just a little confused as whether when working the question out would i need to restate the statements before adjusting the statement of CIE or can i just show the error from prior years in the SOCE. By the way this is for prior year errors as current year errors have to be changed in the statements?
Hi,
It depends on what you’re given in the question. In the example where there are no prior year figures we cannot restate them and can therefore only adjust the opening retained earnings in the SOCIE.
In the other example we are given prior year figures so can therefore restate these as well as adjusting the opening retained earnings in the SOCIE.
Thanks
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