Correcting Errors in Financial Statements
Keywords: Mazars, Thailand, Accounting, TFRS, NAPEs, PAEs, TAS 8, FAP, Single Set of Financial Statements, Errors
7 June 2016
1. For all prior accounting transactions that a company did not recognize in the prior year’s financial statements, the company must correct material errors retroactively in the first set of financial statements in accordance with TAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, for an entity that has adopted the preparation of financial statements under the Thai Financial Reporting Standards for Publicly Accountable Entities(TFRS for PAEs), or in accordance with Chapter 5 of the Thai Financial Reporting Standard for Non-Publicly Accountable Entities (TFRS for NAPEs), for an entity that has adopted the preparation of financial statements in accordance with TFRS for NPAEs. They should do so by taking one of the following steps:
(1) restating the comparative amounts for the prior period presented in which the error occurred; or
(2) 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.
(3) The entity has to disclose the effect of the correction of errors from prior periods in the financial statements in accordance with TFRS for PAEs or TFRS for NPAEs as well.
Examples of accounting errors and their corrections:
Reference: www.fap.or.th