Disclosure issues: Errors

Question 1

Para 41 & 42

Answer 1

41: Errors can arise in respect of recognition, measurement, presentation or disclosure
- FS fail to comply with AASBs if they contain material errors
- Errors discovered prior to authorisation date are corrected but material errors may not be discovered until a subsequent period

42:
- Prior period material errors are correct RETROSPECTIVELY in the FIRST set of FS after discovery
- If errors discovered next period, restate comparative amounts in next set of accounts
- If errors occurred prior to earliest comparative period then restate OPENING balance of affected assets, liabilities and equity