Disclosure of a Retrospective Adjustment Should Include

question 30

Multiple Choice

Disclosure of a retrospective adjustment should include

• A)why the new principle is preferable
• B)the net impact on assets of the retrospective adjustment
• C)the retrospective computation of earnings per share only for the current period
• D)ending balance in Retained Earnings before and after the retrospective adjustment

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Definitions:

365-Day Year

A method used in finance and accounting that assumes a year consists of 365 days to simplify interest rate calculations, disregarding leap years.

Exact Simple Interest

Interest calculated on the principal amount of a loan or investment, based on a 365-day year without compounding.

Loan Period

The duration of time from when a loan is issued to when it is expected to be fully repaid, including its principal and interest.

365-day Year

A financial calculation basis using a calendar year of 365 days for computing interest rates and other financial metrics, ignoring leap year variations.