professor suppose the revenue for 31march 20X2 was incorrectly stated at $1m when it should have been stated at $2.5m, in this case in the FSs of 31march 20X3 (the year in which error was discovered) we will restate REVENUE in SPL, TRs(if it was at credit) and Retained earnings in SFP, right?
Or adjustments will only be made in SFP? and no retrospective adjustment for SPL? is it?
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Prior Period Error
5y ago#1Change the 20x2 revenue with a corresponding entry against RE. Mechanics of PPA are in our FR lectures.
(I am assuming that the error is material).
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