How do you adjust prior period errors under IFRS?

Question

I have calculated depreciation of fixed assets wrongly due to a mistake in the spreadsheet calculation in last year accounts. How do I correct this error? What are the journal entries?

Answer 1

If the amount is not material just account for it this year. If it is material you have to adjust accounts retrospectively and adjust the comparative information (of the last year) as per IAS 8 - Accounting Policies, Changes in  Accounting Estimates and Errors.

Dr - Retained profit a/c
Cr - Provision for depreciation