When Using the Retrospective Approach for a Change in Accounting

question 125

Multiple Choice

When using the retrospective approach for a change in accounting principle,disclosure rules require that

• A)prior years' income statements presented for comparative purposes be restated to reflect use of the new principle unless it is impractical to do so.
• B)all prior years' income statements be restated to reflect use of the new principle,and include a pro forma net income figure of the previously reported income.
• C)no prior years' income statements be restated,but a pro forma net income figure be provided to reflect use of the new principle for each year presented.
• D)no prior years' income statements be restated,and no pro forma net income figures be provideD.