When an inventories costing formula is changed, the change is required to be applied:
A) prospectively and the adjustment taken through the current profit or loss.
B) retrospectively and the adjustment taken through the opening balance of retained earnings.
C) prospectively and the current period adjustment recognised directly in equity.
D) retrospectively and the adjustment recognised as an extraordinary gain or loss.

Question

Quizplus · Accepted Answer

When an inventory costing formula is changed, it is required to be applied retrospectively, with the adjustment made through the opening balance of retained earnings, in accordance with accounting standards for changes in accounting policies.

When an Inventories Costing Formula Is Changed, the Change Is