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Unformatted text preview: a. Calculate the accumulative difference at the beginning of the year b. Change the beginning balance of the R/E and related B/S accounts c. Restate previous years statements included in comparatives 5. Retroactive without restatement (a.+b.) 6. Prospective Application 7. Types of errors a. b. c. Balance Sheet and Income Statement Errors 1 Handout #11 for Bus321-Intermediate Accounting II Professor: Yasheng Chen i. Counter-balancing ii. Non-counter-balancing 8. Counter-balancing error analysis and correction Books have been closed Books not been closed The error is already counterbalanced The error is not yet counterbalanced 9. Non-counter-balancing error analysis and correction 2...
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