When discovering an error at the ending inventory of the last year,what is the effect on the financial statements for both the last and current year?

Yes, Okay I can help you with that.

There are few reasons contributing to the error. Since your question is not so specific regarding the reason of the error, I could mention a few:

1.understatement or overstatement of the COGS sold.

2.Error during recording the in and out of inventory.

3. Spoilage not accounted for et cetera.

Now if the COGS are overvalued by a certain amount, this will certainly reduce your income upto the increased amount in COGS. This affects the next years opening inventory by reducing it .So in the last year, your inventory is undervalued and thus the inventory for the next years opening stock is undervalued too.

In the case of the discovery of an error in inventory it has two effects

The last stock-term evaluation of the highest values of the real value and Hmae Yudi to impact on the cost and profit Batalli Zaida

And vice