The correction of a material error that occurred in a previous period must be accounted for by:

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According to Generally Accepted Accounting Principles (GAAP), the correction of a material error that occurred in a previous period requires a retrospective restatement in the first financial statements issued after the discovery of the error. This means that the financial statements must be restated for all prior periods affected by the error to ensure that they are accurate and fairly presented. This approach allows users of the financial statements to compare the restated financial statements to prior periods and make informed decisions based on accurate information.

The Correction of a Material Error That Occurred in a Previous