Asked by Miladis Rivas on Jul 03, 2024
Verified
Changes in accounting principle and changes in the reporting entity are reported under the retrospective approach.
Accounting Principle
Fundamental concepts or guidelines that govern the field of accounting and instruct the recording and reporting of financial transactions.
Reporting Entity
An entity for which there are users who rely on its financial statements as a major source of financial information about the entity.
Retrospective Approach
An accounting method that applies a new policy or standard to transactions, events, and conditions as if the new policy or standard had always been in effect.
- Gain insights into the impact of shifts in accounting principles and the stipulations for their disclosure.
Verified Answer
Learning Objectives
- Gain insights into the impact of shifts in accounting principles and the stipulations for their disclosure.
Related questions
GAAP States That If It Is Impractical to Determine the ...
An Entry to Record a Change in Accounting Principle Will ...
Why Did FASB Decide It Was Necessary to Require the ...
A Change from One Acceptable Accounting Method to Another Is ...
The Brown Company Changed Its Method of Determining Inventories from ...