IAS 8Chapter 6Lesson 1
What is an error? Current and prior period errors
Step 1 of 8Learning objectives
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An error may affect recognition, measurement, presentation or disclosure. Financial statements do not comply with IFRSs if they contain material errors, or immaterial errors made intentionally. A current period error discovered in that period is corrected before the statements are authorised for issue; a material error discovered later is corrected in the comparatives of the following period. A revised estimate or the outcome of a contingency is not an error.
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Learning objectives
- Identify an error (calculation, application of a policy, oversight, misinterpretation of facts, fraud) and assess whether it is material or intentional.
- Distinguish the correction of an error from the outcome of a contingency or the revision of an estimate.