A Change in Accounting Principle That Is Implemented Using the Retrospective

question 13

Multiple Choice

A change in accounting principle that is implemented using the retrospective approach includes:

• A) implementing the change in the current period only and not adjusting for the cumulative effects on prior periods.
• B) applying the new standard to the adoption period only and recording the cumulative adjustment for prior periods to the beginning balance of retained earnings.
• C) restating financial statements of all periods presented as if the new standard had been used in those periods.
• D) not accounting for the change in the current period or prior periods.

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Definitions:

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