When disclosing the impact of a retrospective adjustment for the change from LIFO to FIFO in 2011, which of the following impacts is not expected to be reported in the comparative financial statements when two-year comparative statements are presented?
A)impact on beginning inventory for 2010
B)impact on 2010 net income
C)impact on ending inventory for 2011
D)impact on cost of goods sold for 2010

Question

Quizplus · Accepted Answer

When changing from LIFO to FIFO, the retrospective adjustment would affect the beginning inventory for 2010, 2010 net income, and cost of goods sold for 2010 to reflect what they would have been under FIFO. However, the impact on ending inventory for 2011 would be part of the current period adjustments and not a retrospective adjustment for the comparative statements.

When Disclosing the Impact of a Retrospective Adjustment for the Change