If It Is Found That an Error Had Been Made

question 46

Multiple Choice

If it is found that an error had been made in a prior period:

• A)The error should be rectified by including the item of income or expense in the period in which the error was discovered.
• B)IAS 1 does not cover this concept and so no entry is required.
• C)IAS 8 requires that errors are corrected via an adjustment to opening balance of retained earnings.
• D)Material errors discovered in the current reporting period must be included in that period's statement of comprehensive income, while non-material errors may be corrected with an adjustment to opening retained earnings.

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