Why this is mistaken
Prospective means from the change date forward. If the supported change affects the current period, record that effect now; future periods absorb only their applicable shares. Prior issued amounts remain intact unless the evidence instead supports error correction.
Where to watch
When this mistake may appear
- New information arrives during the current reporting period.
Check your work
Your work may contain this mistake if:
- Leaves the current year unchanged solely because treatment is called prospective.