A company accounts for the correction of a material error of a past period that it discovers in the current period as
A) a retrospective accounting change.
B) an adjustment to the current period.
C) a prospective adjustment.
D) a prior period restatement.

Question

Quizplus · Accepted Answer

A correction of a material error from a past period is accounted for as a prior period restatement. This involves revising previously issued financial statements to correct the error.

A Company Accounts for the Correction of a Material Error