If a Change in an Accounting Estimate Affects the Current

question 64

True/False

If a change in an accounting estimate affects the current period and future periods, the retrospective reporting approach must be used.

---

Definitions:

Balance Theory

A theory in social psychology suggesting that individuals seek consistency and balance among their beliefs, attitudes, and sentiments in relation to others.

Unit Relation

The connection and interdependence between individual components within a system or structure, determining how they function together as a whole.

Sentiment Relation

Sentiment Relation refers to the connection between emotions and attitudes and how they influence each other in the context of communication or analysis.

Associative Relation

A connection or link between two concepts or entities where one is reminded of the other.