A change in accounting principle occurs when the principle used in the current year is different from the one used by competitors in the current year.

Question

Quizplus · Accepted Answer

A change in accounting principle occurs when a company switches from one generally accepted accounting principle to another, or when a new principle is adopted by the accounting standard-setting bodies. It has nothing to do with what competitors are doing.

A Change in Accounting Principle Occurs When the Principle Used