understated depreciation- accounting estimate error or prior period error?

This topic has 1 reply, 2 voices, and was last updated 4 years ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
August 17, 2021 at 10:14 am #631812
Noah098
Member
- Topics: 935
- Replies: 352
sir if last year depreciation was understated by $2m then what will its impact be in this year’s FSs? What exact balances will be affected of this year?
August 18, 2021 at 8:54 am #631912
Stephen Widberg
Keymaster
- Topics: 17
- Replies: 3453
You may need to recap our FR lectures on prior period adjustments.

Minor understatement – adjust in current year – this year’s profit will go down
Major understatement – prior period adjustment – no impact on this year’s profit
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.