Comparative-statement error bridge

Use three columns for each period: as reported, signed adjustment, and corrected. For a balance sheet, the adjustment columns must satisfy the accounting equation. For income and equity, corrected ending retained earnings must roll forward from corrected opening equity. For cash flows, changes in classification or noncash reconciliation must agree with the corrected statements even when total cash does not change.

The bridge retains exact precision internally and displays the stated rounding unit. A rounding column or disclosed convention absorbs display differences; retained earnings does not.

Tie the periods to authority

ASC 250-10-45-24 requires corresponding adjustments to all affected prior periods when comparative statements are presented. The bridge makes those adjustments visible instead of hiding them in one current entry.

Suppose an omitted Year 1 expense reverses in Year 2. The Year 1 adjustment lowers income and equity; the Year 2 adjustment removes the reversal's effect. The two income effects may sum to zero, but each comparative column still needs correction. A separate opening column captures effects from before the earliest displayed period.