Suggest the prescribed correction required under IND-AS to deal with errors discovered in Financial Statement of Maximo Limited. Please also suggest…

(a) 6 As per the definition given in Ind AS 8, prior period errors are omissions from, and misstatements in, the entity's financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that: (a) was available when financial statements for those periods were approved for issue; and (b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements. Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud. Further, paragraph 41 of Ind AS 8 states that errors can arise in respect of the recognition, measurement, presentation or disclosure of elements of financial statements Financial statements do not comply with Ind AS if they contain either material errors or immaterial errors made intentionally to achieve a particular presentation of an entity's financial position, financial performance or cash flows. Potential current period errors discovered in that period are corrected before the financial statements are approved for issue. Material errors are sometimes not discovered until a subsequent period, and these prior period errors are corrected in the comparative information presented in the financial statements for that subsequent period. Unless impracticable, an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred. Brief Description on Ind AS 8 As per para 42 of Ind AS 8, an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by: (a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or (b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. (i) Incorrect application and disclosure of retrospective application and disclosure of change in accounting policy In case retrospective application of change in accounting policy or disclosures related to it have not been followed appropriately, it will also be considered as prior period errors. Accordingly, in the financial statements for the year ended 31st March, 2024, the comparative amounts as at 31st March 2023 would be restated to reflect the correct retrospective application and disclosure of change in accounting policy. An entity is also required to present a third balance sheet as at the beginning of the preceding period i.e., as at 1st April 2022 in addition to the minimum comparative financial statements for the financial year 2022-2023, if the restatement has a material effect on the information in the balance sheet at the beginning of the preceding period. Further, financial statements of subsequent periods need not repeat these disclosures. (ii) Incorrect application of accounting policy Even the incorrect application of accounting policy will constitute as prior period error and needs to be treated as per para 42 of Ind AS 8 as discussed above. Accordingly, incorrect application of accounting policy requires retrospective correction of an error under Ind AS 8 assuming that the correct accounting policy is to be followed since beginning of the recognition of the transaction. Accordingly, in the financial statements for the year ended 31st March, 2024, the comparative amounts as at 31st March, 2023 would be restated to reflect the correct application and disclosure along with the restated third balance sheet as at the beginning of the preceding period, i.e., as at 1st April 2022. When an entity is required to present an additional balance sheet as at the beginning of the preceding period, it must disclose the information as required by Ind AS 8 and also the information as explained in subsequent points. However, it need not present the related notes to the opening balance sheet as at the beginning of the preceding period.