Which of the following is not a correct statement of the nature of the comparative amounts included in a financial report:
A)they must be adjusted for errors discovered in subsequent reporting periods
B)they are adjusted for subsequent changes in accounting policies
C)they must always be the same as in the prior period financial report
D)they are not adjusted to reflect subsequent changes in accounting estimates

Question

Quizplus · Accepted Answer

The statement that comparative amounts in a financial report must always be the same as in the prior period financial report is not correct. While it is common to compare current period amounts to prior periods, there may be legitimate reasons for changes in comparative amounts, such as changes in accounting policies or adjustments for errors discovered in subsequent reporting periods.

Which of the Following Is Not a Correct Statement of the Nature