If a mistake in applying an accounting policy is discovered in a subsequent period, that mistake must be corrected retrospectively.

Name: If a mistake in applying an accounting policy is discovered in a subsequent period, that mistake must be corrected retrospectively.
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According to accounting standards, if a mistake in applying an accounting policy is discovered in a subsequent period, it must be corrected retrospectively by making adjustments in prior period financial statements.

If a Mistake in Applying an Accounting Policy Is Discovered