Retrospective application refers to the application of a different accounting principle to recast previously issued financial statements-as if the new principle had always been used.

Question

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Retrospective application involves restating previously issued financial statements using a new accounting principle as if the principle had always been used, which means that the statements are presented as though the new principle had been in place since the beginning of the reporting period.

Retrospective Application Refers to the Application of a Different Accounting