Why this is mistaken
Partition the bridge. Pre-comparative direct effects enter opening equity; period-specific effects revise each comparative column; current effects remain current; indirect effects follow their own recognition timing. One cumulative current-income entry misstates the route.
Where to watch
When this mistake may appear
- A principle change affects several years.
Check your work
Your work may contain this mistake if:
- Debits or credits current income for the entire cumulative difference.