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  • 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

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