When Making a Retrospective Adjustment, All of the Following Steps

question 113

Multiple Choice

When making a retrospective adjustment, all of the following steps are included except

• A) computing the cumulative effect of the new accounting principle as of the beginning of the first period presented.
• B) adjusting the current period net income for the cumulative effect of the change.
• C) adjusting the carrying value of impacted assets and liabilities.
• D) disclose the nature and reason for the change in accounting principle, including the new principle is preferable.

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Definitions:

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Legal demands for compensation by individuals who have suffered injury or loss due to another party's failure to exercise the appropriate level of care.

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