What Is a Prior-Period Adjustment? How and When Is a Prior-Period

question 270

Essay

What is a prior-period adjustment? How and when is a prior-period adjustment recorded?

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Definitions:

Fair Values

The estimated market value of an asset or liability, based on current market prices.

Unrealized Holding

Refers to the increase or decrease in the value of investments held by the company that have not been sold.

Securities Held

Financial instruments that are owned and held by an investor, including stocks, bonds, or other investments.

Declared

In financial context, it often refers to the official announcement made by a company's board of directors to pay dividends to its shareholders.