Authority and currency
About this authority
- Publisher
- U.S. Securities and Exchange Commission
- Standing
- Primary authority
- Version
- SAB 108 as accessed 2026-08-08
- Relevant parts
- Topic 1.N, Considering the effects of prior year misstatements
- Currency
- current · checked Aug 8, 2026
The rollover approach measures the amount by which the current-period income statement is misstated. The iron-curtain approach measures the amount by which the ending balance sheet is misstated. A carryover error can look small under one view and large under the other; correcting it through current income can also create a new current-period distortion. The controlled workpaper computes both views, then performs the separate SAB 99 analysis rather than allowing a preferred method to hide accumulated error.