For accounting changes, which of the following is NOT allowed?
A) To use retrospective application for an accounting policy change without restatement, if restatement is impractical.
B) To net accounting errors for disclosure purposes.
C) To use prospective application for an accounting policy change, if allowed in the transition policy.
D) To use prospective application for a change in estimate.

Question

Quizplus · Accepted Answer

Netting accounting errors for disclosure purposes is not allowed as it can hide specific errors and distort the financial statements. All other options are allowed as per the accounting standards.

For Accounting Changes, Which of the Following Is NOT Allowed