If It Is Found That an Error Had Been Made

question 27

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) AASB 101 does not cover this concept and so no entry is required.
• C) AASB 108 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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Definitions:

Cast Removed

The process of taking off a cast that was applied to support and protect broken bones or fractures as they heal.

Chronic Obstructive Pulmonary Disease

A long-term lung disease characterized by breathing difficulty due to airflow blockage.

Supplemental Oxygen

Additional oxygen provided to individuals who are not getting enough oxygen naturally to maintain healthy blood oxygen levels.

Nasal Cannula

A medical device consisting of a lightweight tube that splits into two prongs to deliver supplemental oxygen through the nostrils.