If an entity were to discover that an expense of a prior period was omitted (perhaps as
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If an entity were to discover that an expense of a prior period was omitted (perhaps as the result of a genuine mistake), should it record the error by increasing the expenses in the period in which the error was discovered, or recognise the error by making an adjustment directly to retained earnings?
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A prior period error is not to be accounted for by increasing the expense in the peri...View the full answer
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