Sample Disclosure – Note On Correction Of Prior Year Errors (8 November 2009)
Adjustment Made In Respect Of Correction Of Prior Year Error
In the previous financial year, a wholly owned subsidiary company declared an interim tax exempt dividend of RM0.10 per share on its 10,000,000 ordinary shares of RM1/- each amounting to RM1,000,000. However, the dividend was omitted from recording in the financial statements of the subsidiary company in the previous financial year.
The error was detected during the current financial year and in accordance with the requirement stated in FRS108 Accounting Policies, Changes in Accounting Estimates and Errors, the dividend is now recognised retrospectively and certain comparative figures has been restated as disclosed in Note XX to the financial statements.