Prior period errors and changes in accounting policy create gains and losses that are accounted for in the period that the errors are discovered,or the change in policy made:

Question

Quizplus · Accepted Answer

Prior period errors and changes in accounting policy are typically adjusted retrospectively, meaning they are corrected in the financial statements of the prior periods affected, not just in the period they are discovered or changed.

Prior Period Errors and Changes in Accounting Policy Create Gains