f profit and loss is an adjustment related to prior interim periods of the current fiscal year . . . ." In such instances, the FASB stated in Standard No. 16 that: (a) the portion of the item that is directly related to business activities . . . during the current interim period, if any, shall be included in the determination of net income for that period; (b) prior interim periods of the current fiscal year shall be restated to include the portion of the item that is directly related to the business activities of the enterprise during each prior interim period in the determination of the new income for that period; and (c) the portion of the item that is directly related to business activities of the enterprise during prior fiscal years, if any, shall be included in the determination of net income of the first interim period of the current fiscal year."
The Current Text: Accounting Standards, with respect to prior period adjustments, states that adjustments "of previously issued financial statements are required if th
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