Accounting Errors- Restatement

Question 1

What are different types of errors that require a restatement?

Answer 1

Error in recognition, measurement, or disclosure

An error can be mathematical or misapplication of accounting principles

Question 2

What is the difference between retroactive application and restatement?

Answer 2

We use restatement when it was an error rather than a voluntary principle change.

Question 3

What are the differences between US GAAP and IFRS?

Answer 3

• Impracticability Exception for AP Change only (US GAAP)

- Impracticability exception for errors and AP changes (IFRS)