Retrospective treatment of prior years' financial statements is required when there is a change from:
A) Average cost to FIFO.
B) FIFO to average cost.
C) LIFO to average cost.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Retrospective treatment of prior years' financial statements is required whenever there is a change in accounting policies, estimates or errors. All the given options involve a change in accounting policies and therefore, retrospective treatment of prior years' financial statements is required in all cases.

Retrospective Treatment of Prior Years' Financial Statements Is Required When