Why this is mistaken
Estimates describe uncertainty using information available at the time. A different later outcome may be new experience. Build the dated evidence record and ask what existed, was reasonably available, and was used before deciding whether the earlier accounting was erroneous.
Where to watch
When this mistake may appear
- Actual collections, claims, useful life, or another outcome differs from the estimate.
Check your work
Your work may contain this mistake if:
- Calls the difference an error without identifying an omitted or misused earlier fact.