Treatment of Errors as per Ind AS 8 - Ind AS - Indian Accounting Standards - Companies Law

Treatment of Errors as per Ind AS 8 Meaning Prior period errors are omissions or misstatements in the financial statements of one or more periods. These are arising from failure to use or misuse of reliable information that: Was available at the time of approval of financial statements; Could be reasonably expected to have been obtained and taken into account. Example of Errors include Mathematical mistakes, Error of principle, fraud, oversight, misinterpretation of fraud. Treatment of Errors Potential error of current period or Immaterial prior period error Corrected in current period Financials. Material prior period errors discovered subsequently corrected retrospectively by restating comparative amounts Opening balance of Assets, Liabilities Equity for each period. For Retrospective Application To give retrospective effect, entity is required to restate amounts for the prior period(s) presented in which the error occurred; or If the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. If IMPRACTIBLE to restate retrospectively, then apply retrospectively to the extent possible or on prospective basis. Note:- Treatment of Error of Interim FS- As per Ind AS 34, Overall goal is to ensure that interim financial report include all information relevant to understand financial position performance during interim period. For changes in accounting policies, accounting estimates Errors, Assessment of materiality should be done in relation to interim period (not on the basis of annual period).