Why this is mistaken
Compare the full catch-up entry with the amount that originated or reversed in the current period. The difference may be an out-of-period distortion even though ending balances become correct. The supplied reporting conclusion must address both views.
Where to watch
When this mistake may appear
- An accumulated prior-period error is booked through current income.
Check your work
Your work may contain this mistake if:
- Checks only the ending balance and ignores the current rollover effect.