Correction of accounting errors


Consider the following questions:

1. What action is required when it is discovered that a five-year insurance premium payment of $50,000 two years ago was debited to insurance expense? (Ignore taxes.)

2. With regard to the correction of accounting errors, what is the difference between U.S. GAAP and IFRS?

If possible, please give examples to better understand your response.

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Accounting Standards: Correction of accounting errors
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