Which of the following alternative accounting methods is(are) allowed by ASPE and IFRS for reporting accounting changes?
A) prospective and retrospective
B) current and retrospective
C) current and prospective
D) retrospective only

Question

Quizplus · Accepted Answer

ASPE and IFRS allow both prospective and retrospective accounting methods for reporting accounting changes. Prospective involves applying the new accounting policy to future transactions and events, while retrospective involves restating the previous financial statements to reflect the new accounting policy. Current accounting method is not an option for reporting accounting changes.

Which of the Following Alternative Accounting Methods Is(are) Allowed by ASPE