A change to GAAP from a principle that is not generally accepted
A) requires a retrospective application of the new accounting principle.
B) requires prospective treatment.
C) requires a retrospective adjustment or restatement.
D) is a correction of an error and accounted for by a prior-period adjustment.

Question

Quizplus · Accepted Answer

A change from a principle that is not generally accepted to GAAP is considered a correction of an error, which requires a prior-period adjustment to correct the financial statements.

A Change to GAAP from a Principle That Is Not