Accounting policy, GAAP & adjustments · Working
Prior-period error
Also called: prior-year error
ELI5
An omission or misstatement in previously issued financial information under applicable criteria.
Used in conversation
“The team needs one controlled copy of prior-period error, with an owner and date.”
Pitch context
You will see “Prior-period error” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.
Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 4
Direct term-level sources and supporting source families.
- IFRS Foundation — IFRS GlossaryDirect source · primary · checked 2026-08-16
- Financial Accounting Standards Board — FASB Accounting Standards CodificationDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Non-GAAP Financial Measures — Compliance and Disclosure InterpretationsDirect source · primary · checked 2026-08-16
- U.S. Small Business Administration — Break-even pointSupporting source family · primary · checked 2026-08-16