Which of the following statements is NOT correct? a. a change from an inappropri

Question

Which of the following statements is NOT correct?

a. a change from an inappropriate accounting principle to a proper one should be accounted for as an accounting error

b. a change from an inappropriate accounting principle to a proper one should be accounted for as a change in accounting principle

c. a change from an inappropriate accounting principle to a proper one should be accounted for retrospectively

d. a change from an inappropriate accounting principle to a proper one may require an adjustment to beginning retained earnings for the earliest year reported

Explanation / Answer

Answer

Which of the following statements is NOT correct?

a. a change from an inappropriate accounting principle to a proper one should be accounted for as an accounting error

Explanation

You are required to retrospectively apply a change in accounting principle to all prior periods, unless it is impracticable to do so. To complete a retrospective application, you must:

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