Final answer:
When comparative financial statements are not available, an error from a prior period should be corrected through a prior period adjustment, adjusting the beginning retained earnings. Material errors need to be disclosed in the financial statement footnotes with a description and impact analysis.
Step-by-step explanation:
When comparative financial statements are not presented, an error from a prior period should be treated as a prior period adjustment. Such adjustments are made to the beginning retained earnings balance in the statement of shareholders' equity in the first period presented. This process ensures that all periods presented in the financial statements are accurate and comparable. If the error is material, it should be disclosed in the footnotes of the financial statements, along with a description of the nature of the error and the impact of the correction on prior period financial results.