Why this is mistaken
Classification follows evidence and authority. If the earlier file omitted or misused an existing fact or misapplied GAAP, the route remains error correction. If later information genuinely changed an uncertain amount, the estimate route may apply. Desired presentation decides neither.
Where to watch
When this mistake may appear
- Restatement or disclosure consequences are uncomfortable.
Check your work
Your work may contain this mistake if:
- Uses the new label without resolving facts known or knowable earlier.