prior year adjustments

prior year adjustments

adjustments applicable to prior years arising from changes in ACCOUNTING PRINCIPLES, for example the use of a different DEPRECIATION rule for fixed assets. Prior year adjustments are made to ensure that previous years' accounting results (recalculated on the basis of the new accounting policy) are consistent with those of the current year (measured on the same new basis).
References in periodicals archive ?
The board's decision to remove Mr Taylor followed their conclusion that certain of the prior year adjustments made in the 2005 accounts should have been presented as a correction of fundamental errors and not as changes in accounting policy," the group said.
Presumably, all or a substantial portion of the interest expense arose from prior year adjustments to their Schedule F.