A change that uses the prospective approach is accounted for by:
A) Implementing it in the current year.
B) Reporting pro forma data.
C) Retrospective restatement of all prior financial statements in a comparative annual report.
D) Giving current recognition of the past effect of the change.

Question

Quizplus · Accepted Answer

The prospective approach involves implementing a change in accounting policy or estimate in the current year and going forward, without altering past financial statements.

A Change That Uses the Prospective Approach Is Accounted for By