Adjusting Events
Post-reporting-period events that provide further evidence about conditions existing at the reporting date and therefore require statement adjustment.
Financial-statement terms for accounting-method changes, adjusting events, non-adjusting events, errors, prospective application, and restatements.
Method Changes, Errors, and Restatements is the financial-statement landing page for accounting-method changes, adjusting events, non-adjusting events, prior errors, prospective application, compensating errors, and restatements. It keeps related terms in one branch so readers can move from a broad statement question to the article that owns the evidence.
Use this page when a correction or method change affects trend analysis and reliability of prior statements. Use the parent Accounting Policies, Restatements, and Quality page when you need the broader reporting map. For an individual decision, confirm the statement line, disclosure note, reporting period, measurement basis, and calculation before relying on the term.
Use the table below to move from this landing page into the term page that best matches the statement evidence.
| Term | Use it for |
|---|---|
| Adjusting Events | Adjusting Events helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
| Change in Accounting Method | Change in Accounting Method is a accounting-change or restatement term used to place the narrower article in the right statement, period, and disclosure context. |
| Compensating Error | Compensating Error helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
| Fundamental Error | Fundamental Error helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
| Non-Adjusting Events | Non-Adjusting Events helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
| Prospective Application | Prospective Application helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
| Restatement in Accounting | Restatement in Accounting helps readers evaluate corrections, method changes, subsequent events, and their effect on comparability. |
A restatement can change prior-year earnings and ratio trends even though the current business operations have not changed.
Changes & Restatements content is educational and does not provide personalized investment, tax, legal, accounting, audit, valuation, or securities advice.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
Post-reporting-period events that provide further evidence about conditions existing at the reporting date and therefore require statement adjustment.
Change in Accounting Method is a reporting-quality concept used to evaluate financial statement corrections, prior errors, and investor trust.
Compensating Error is a reporting-quality concept used to evaluate financial statement corrections, prior errors, and investor trust.
A prior-period reporting error can require correction, disclosure, or restatement when it affects financial-statement reliability.
Post-reporting-period events that relate to conditions arising after the reporting date and therefore do not change the original statement amounts.
The prospective application refers to the practice of applying a new accounting policy to transactions, events, and conditions from the date of change forward.
Restatement in Accounting is a reporting-quality concept used to evaluate financial statement corrections, prior errors, and investor trust.