A change in accounting principle because an Accounting Standard Update has been issued and the former principle is no longer generally accepted is treated under the prospective method.

Question

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When a change in accounting principle is due to an Accounting Standard Update and the former principle is no longer generally accepted, it is typically applied retrospectively to all prior periods presented in the financial statements, unless the transition guidance specifies a different method.

A Change in Accounting Principle Because an Accounting Standard Update