A change in accounting principle from one that is not generally accepted to one that is generally accepted should be treated as
A)an error and corrected by prior period adjustment
B)a change in accounting principle and the cumulative effect included in net income
C)a change in accounting principle and prior period financial statements are restated
D)a change in accounting principle and adjustments made prospectively

Question

Quizplus · Accepted Answer

A change from a non-GAAP principle to a GAAP principle is considered an error and should be corrected by a prior period adjustment, restating prior period financial statements.

A Change in Accounting Principle from One That Is Not