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Why Is the Retrospective Approach Conceptually Appropriate for Changes in Accounting

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Essay

Why is the retrospective approach conceptually appropriate for changes in accounting policy?


Definitions:

Contractual Duty

An obligation agreed upon in a contract that one party must perform for the other.

Revocation

The official cancellation of a decree, decision, or promise.

Rejection

Refusal to accept, approve, or support something.

Obligations

Legal or moral responsibilities and duties that an entity is required to fulfill.

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