What is the retrospective approach for adjusting for changes in accounting principle? 1.Making the changes to...
What is the retrospective approach for adjusting for changes in accounting principle?
1.Making the changes to the current and future years because of missing information.
2.Making the changes to the current and past year for comparison purposes.
3.Making the changes to the current and all prior years since the old principle was chosen.
4.Making the changes to the current and other years shown on the financial statements.
Homework Answers
Change in Accounting Principle requires retrospective approach to be followed.
Retrospective approach defined as application of new accounting principle to all past period as if the new principle was followed from the start. The application should be done to all past period unless it is impractical to do so.
Answer would be 3
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What is the retrospective approach for adjusting for changes in
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