Prior Period Items

Comparison between Indian GAAP and Ind-AS/ IFRS

As per AS-5, prior period items are income or expenses which arise in the current period as a result of errors or omissions in the preparation of the financial statements of one or more prior periods.

Prior period items are included in determination of net profit or loss of the period in which the error pertaining to a prior period is discovered and are separately disclosed in the statement of profit and loss in a manner that the impact on current profit or loss can be perceived.

However, under Ind-AS/ IFRS, material prior period errors are corrected retrospectively by restating the comparative amounts for prior periods presented in which the error occurred or if the error occurred before the earliest period presented, by restating the opening statement of financial position.

Be the first to comment

Leave a Reply

Your email address will not be published.


*


%d bloggers like this: