Disclosure of a retrospective adjustment should include
A)why the new principle is preferable
B)the net impact on assets of the retrospective adjustment
C)the retrospective computation of earnings per share only for the current period
D)ending balance in Retained Earnings before and after the retrospective adjustment

Question

Quizplus · Accepted Answer

Disclosure of a retrospective adjustment should include why the new principle is preferable, as it provides users with an understanding of the reason for the change and its expected benefits.

Disclosure of a Retrospective Adjustment Should Include