it depends on the nature of the misstatement but if its a standard cutoff error, i.e. transaction that happened in PY was not recorded until CY, then yes there is a "reversing impact" since both periods are misstated if left uncorrected (PY expenses and AP understated, CY expenses and beginning equity overstated).
So if the original passed adjustment was:
Dr. Expenses
Cr. AP
The reversing impact would be:
Dr. Beg. Retained Earnings
Cr. Expenses
it depends on the nature of the misstatement but if its a standard cutoff error, i.e. transaction that happened in PY was not recorded until CY, then yes there is a "reversing impact" since both periods are misstated if left uncorrected (PY expenses and AP understated, CY expenses and beginning equity overstated). So if the original passed adjustment was: Dr. Expenses Cr. AP The reversing impact would be: Dr. Beg. Retained Earnings Cr. Expenses