During 20X2, a Singapore-incorporated company, JK Pte Ltd, discovered that the inventory as stated in the published 20X1 Statement of Financial Position was overstated by $150,000. JK Pte Ltd uses a periodic inventory system and the First-In-First-Out cost method. Discuss and determine the accounting treatment of this overstatement in JK Pte Ltds books based on FRS 8 Accounting Policies, Changes in Accounting Estimates and Errors.