How to Account for Accounting Errors

Accounting errors may creep into the financial statements as a result of mathematical mistakes, oversights, the incorrect application of generally accepted accounting principles, etc. When a company learns of an accounting error, the firm must correct the error retrospectively. This means that all prior periods being presented must be restated if they were affected by the error. If the error also had an effect on the company's financials in the periods prior to the periods currently being presented, the company must make an adjustment (this is known as a "prior period adjustment") to the beginning balance of the Retained Earnings account for the earliest period currently being presented.—
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[didi]

CAN I JUST SAY HOW EXCITED I AM TO HAVE FOUND YOUR CHANNEL. YOU HAVE SO MANY VIDEOS! A WHOLE WEALTH OF KNOWLEDGE!!! QUARANTINE JUST GOT A MILLION TIMES BETTER :)

[bluesun]

Thank you, Sir! I just started the self-study CPA course and your videos help!

[pcRs]

Your videos have saved me, after Hurricane Ian the scheduling had me taking 3 exams this week and left my fra 3 one for last, thanks to your videos (and some supplementary information from my professor) I feel prepared for my exam tomorrow in just 2 days. Thanks a lot for what you do.

[alessiocorbetto]

thank you so much for your videos you are an incredible accountant and teacher.

[vipz]

This is super duper clear; thank you! Follow up question: right before the video ended, you said we'd reduce the beginning balance of RE as of 1/1/2021 by 10k. Do we adjust Accumulated Depreciation down as well, so the total change to the account in 2021 is 20k?

[poebxob]

Nice! very informative it is :) It helped me in my CPA topic

[sandeepaditya]

Hi, I have been using your videos to understand almost all the topics of my CMA course , and just wanted to thank you, awesome work, what app do you use for the explanation?

[anthonysotelo]

Should the prior period adjustment be net of tax?

[dingding]

Hi, just found such a good.channel.Thank you for the excellent class. I got a question here, if you have time:)A company has negetive working capital, and the explaination I got is that they have tons of gift card liabilities---what I don't understand is that when the company received the cash from the sales of a gift card, the cash goes to the current assets right? So both current assets and liabilities go up by the same amount. How can the gift card liabilites explain the negetive working capital then ?
Thanks a lot!

[MissIzza]

Hi, i would like to request you to make a video about IFRS 16, lease.

[alumi]

Hey, could you in further videos use colours that are easier to see when wearing red glasses? I'm using them before going to sleep, and I have problems reading some things you write.

[Chucky]

Nice one Ed. But let’s spice this up, make it a bit more fun by adding deferred tax accounts. And also let’s say in the previous fiscal years involved had different corporate income tax rate. And let’s say the correction involves asset evaluation, an increase in asset evaluation. And finally last curve ball, say the tax authority has decided not to reopen the first half of the periods involved, but will assess the last half periods involved to date. How fun will that be?

[muditdawra]

Can you please help me how to get standalone financial of amazon .

[Ahmad-zqve]

can you write clearly and change this background ??