Which of the following accounting changes should not be accounted for prospectively?
A) The correction of an error.
B) A change from declining balance to straight-line depreciation.
C) A change from straight-line to declining balance depreciation.
D) A change in the expected salvage value of a depreciable asset.

Question

Quizplus · Accepted Answer

The correction of an error should be accounted for retrospectively, meaning that the prior periods' financial statements should be restated to reflect the correction. B, C, and D are changes in accounting estimate or principle that should be accounted for prospectively.

Which of the Following Accounting Changes Should Not Be Accounted