Which of the following statements in relation to errors is correct?
A) Errors must be accounted for on a retrospective basis;
B) Under the "all inclusive" concept of profit, accounting errors must be recognised in profit and loss for the period;
C) All errors, regardless of their size must be corrected as soon as they are discovered;
D) Where the error is considered to be fundamental, the prior year financial statements must be recalled and reissued.

Question

Quizplus · Accepted Answer

Errors must be accounted for on a retrospective basis, meaning that prior period financial statements are restated to correct the error.

Which of the Following Statements in Relation to Errors Is