We Record and Report Most Changes in Accounting Principle Retrospectively

question 107

Essay

We record and report most changes in accounting principle retrospectively, but sometimes report the changes prospectively. Explain when it is appropriate to report the changes prospectively. Provide examples.

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Definitions:

Active Voice

A grammatical voice in which the subject of the sentence performs the action expressed by the verb, often making the sentence clearer and more direct.

Direct Sentences

Direct sentences are clear and straightforward statements that express an idea or instruction without ambiguity.

Vigorous Sentences

Sentences that are constructed with energy and clarity, often using active voice and concrete language to make an impact.

Be Advised

A phrase often used to draw attention to important information, indicating that what follows should be noted carefully.