How do you correct prior year financial statements for a finance lease incorrectly accounted for as an operating lease?

Question

Leased assets incorrectly accounted as operating lease

Answer 1

IAS 8.42 - Subject to paragraph 43, an entity shall correct material prior period errors retrospectively in the first set of financial statements authorised for issue after their discovery by:
(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or
(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented.