Why this is mistaken
Net income is one projection of the error. Rebuild the balance sheet and equity rollforward, test cash-flow classification and the indirect reconciliation, compute tax and EPS by period, and reconcile the note. The correction is not complete while any projection remains untied.
Where to watch
When this mistake may appear
- The pretax and after-tax income effects have been calculated.
Check your work
Your work may contain this mistake if:
- Cannot reconcile corrected assets, liabilities, equity, cash flows, or per-share amounts.