What constitutes a prior period error under IAS 8 and how is it corrected?

Prior period errors are omissions from, and misstatements in, an entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that was available when those statements were authorized for issue. Under IAS 8, material prior period errors must be corrected retrospectively in the first set of financial statements authorized for issue after their discovery by restating the comparative amounts for the prior period(s) presented or restating the opening balances of assets, liabilities, and equity.