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Let, last year we audited a company and disclaimed of opinion. In the current year during our verification, we find that last year there was an imbalance in the Balance sheet which was solved by a manual adjustment. Now what should we do? If the management agrees to correct the error then should the management prepare three column FSs i.e. Restated corresponding figures and the last audited figure? Or is it okay to correct only the corresponding figures without mentioning the last year's audited figures?

If the impact is immaterial, they can treat it as a current period entry without restating comparatives. Read more at: https://ifrscommunity.com/knowledge-base/errors/

Thank you.

Hi
it is advisable to use 3 columns finance statements if management agrees for it with restated corresponding figure and the last audit figure to provide transparency and clear comparison.

It's a requirement actually, at least in IFRS (unless the impact is immaterial): https://ifrscommunity.com/knowledge-bas ... nformation