top of page
  • Writer's pictureThomas Tsang

Prior year error

When there was a judgement made in prior year without concrete evidence of support. The audit should have qualified it.

When in subsequent year, the judgement is changes with the intention to correct the error whereby no new information or evidence available. The judgement should be a correct of error in prior year. It should be a prior year adjustment to correct the error in judgment.

It is not a change in judgment as the judgment made in prior year was an error.

Reference FRS8 para 41

1 view0 comments

Recent Posts

See All

Impairment test under US GAAP

Under US GAAP, the carrying amount of the assets is compared to the undiscounted future cash flow of the assets generated. If the amount of undiscounted cash flow is highr than carrying amount, no im

Discount on enterprise value

When apply discount on lack of marketability (DLOM) and lack of control (DLOC) on enterprise value (EV), it is a multiple of EV x (1-DLOM) x (1-DLOC). But apply the discount on Equity value would lowe

Equity instrument

In accordance with SFRS109, investment in equity instruments must be subsequently measured at fair value. In limited circumstances, cost represents the best estimate when recent information not avail


bottom of page