Disclosure notes related to a change in accounting principle under the retrospective approach should include:
A) The effect of the change on executive compensation.
B) The auditor's approval of the change.
C) The SEC's permission to change.
D) Justification for the change.

Question

Quizplus · Accepted Answer

Disclosure notes related to a change in accounting principle should justify the reason for the change, including any impact on financial statements. The effect on executive compensation, auditor's approval, and SEC's permission are not relevant to disclosure notes for a change in accounting principle under the retrospective approach.

Disclosure Notes Related to a Change in Accounting Principle Under