Question: When preparing its financial statements for 30 June 2023, the chief financial officer of BCD Ltd discovered that bank loans of $1.5 million at 30

When preparing its financial statements for 30 June 2023, the chief financial officer of BCD Ltd discovered that bank loans of $1.5 million at 30 June 2022 had been netting off against loans to directors of $2.0 million so that only $0.5 million was disclosed. What is the correct treatment on discovering this material error in the current period? Ignore the error if it has no effect on the asset and liability balances at the end of the current period. Keep it hidden from the auditors. Disclose the error made in the notes without restating the comparatives. Restate the comparatives: loans receivable $2 million; loans payable $1.5 million

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