When an Inventory Costing Formula Is Changed, the Change Is

question 5

Multiple Choice

When an inventory costing formula is changed, the change is required to be applied:

• A) prospectively and the adjustment taken through the current profit or loss;
• B) retrospectively and the adjustment taken through the opening balance of retained earnings;
• C) prospectively and the current period adjustment recognised directly in equity;
• D) retrospectively and the adjustment recognised as an extraordinary gain or loss.