When a firm decides to change an accounting principle, but does not have sufficient information to use the retrospective approach, it may ________.
A) estimate the numbers to do so
B) declare the change to be impractical
C) be forced to abandon the change
D) use the prospective approach

Question

Quizplus · Accepted Answer

When a firm cannot apply the retrospective approach due to insufficient information, it may use the prospective approach, which applies the change to current and future periods only.

When a Firm Decides to Change an Accounting Principle, but Does