M351_Notes-Day_25_Chg-Err_2

M351_Notes-Day_25_Chg-Err_2 - C. On pages 1178-1180 here is...

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A. Correction of errors : Restate (go back and change [write over] presented statement amounts to change incorrect statement amounts to correct amounts). Also make a journal entry, if necessary, to change incorrect current period statement amounts to correct amounts. See Illustrations 22-17 and 22-18, 22-4 and 22-5 on pages 1168-1169 for an example of error correction. Illustration 22-16 on page 1168 provides a list of possible errors. B. There is an explanation additional errors on pages 1174- 1178.
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Unformatted text preview: C. On pages 1178-1180 here is a comprehensive example of numerous errors and error corrections spread over several years. D. On pages 1180-1181 is a worksheet example of correction of several errors in the financial statements. E. Note, for transition to M503, that there is a section in Appendix 22A on pages 1185-1187 that explains how to effect a change from the fair-value method to the equity method for an investment in equity securities. 1...
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