Prior years' financial statements are restated under the:
A) Current approach.
B) Prospective approach.
C) Retrospective approach.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Prior years' financial statements are restated under the retrospective approach, which involves adjusting the reported results of prior years to reflect the same accounting policies and methods used in the current period. This approach provides users with a more accurate and consistent comparison of financial information across different periods.

Prior Years' Financial Statements Are Restated Under The