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prior-period adjustments


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Material adjustments applicable to prior accounting periods arising from changes in accounting policies or from the correction of fundamental errors. They do not include normal recurring adjustments or corrections of accounting estimates made in prior periods. Under Financial Reporting Standard 3, if prior-period adjustments fall within these definitions, the financial statements for the current period should not be distorted, but the prior periods should be restated with an adjustment to the opening balance of the retained earnings.

Subjects: Financial Institutions and Services — Accounting.


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