Retrospective adjustments are expected to
A)impact financial statements of only previous years
B)impact financial statements of previous years and current years as if the accounting principle had always been used
C)produce no impact on the financial statements of previous years
D)produce no impact on the financial statements of the current year

Question

Quizplus · Accepted Answer

Retrospective adjustments are accounting changes that are made as if a particular accounting principle had always been followed. As a result, they will impact the financial statements not only of previous years but also of the current year as if the principle had always been used. Therefore, option B is the correct choice.

Retrospective Adjustments Are Expected to