The restatement of an entity’s financial statements that is prompted by discovery of an accounting error (material error) in prior period statements. This involves the correction of the recognition, measurement and disclosure of amounts of financial statement elements as if a prior period error (s) had never been made.
The conduct of retrospective restatement is not always practicable, as is the case when the monetary effects of error correction are indeterminable or if determining such effects requires significant estimates and objective determinants of relevant circumstances that gave rise to prior period errors, etc.
