Treatment of Reclassification Error of Liabilities in the Current Year’s Financial Statements Under AS

A company has classified some of its material liability as “Current liability” up to last year, however, while preparing the annual accounts for the current year it was found that those liabilities should have been classified as “Non-current liabilities”. The management of the company has changed the classification of liabilities in the comparative amounts of the financial statements for the current year. This story discusses whether this reclassification of liability from current to non-current in the comparative financials needs any disclosure as per accounting standards (AS)

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