Errors can arise in respect of the recognition, measurement, presentation or disclosure of elements of financial statements.

Financial statements do not comply with Ind ASs if they contain either material errors or immaterial errors made intentionally to achieve a particular presentation of an entity’s financial position, financial performance or cash flows.


Potential current period errors discovered in that period are corrected before the financial statements are approved for the issue.

However, material errors are sometimes not discovered until a subsequent period, and these prior period errors are corrected in the comparative information presented in the financial statements for that subsequent period.
An entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by:


(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or
(b) 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.

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