The financial statement impact for a company that desires to make a change in accounting policy include(s)

Question

Quizplus · Accepted Answer

All of these options are included in the financial statement impact for a company that desires to make a change in accounting policy. A retrospective restatement of prior period financial statements may be necessary in order to properly reflect the change in the financial statements. The financial impact of the change, charged or credited to the opening balance of retained earnings, will also need to be accounted for. The nature and justification for the change must be disclosed in order to provide transparency to stakeholders. The effect of the change on current year net income is important to note in order to understand the implications of the new policy.

The Financial Statement Impact for a Company That Desires to Make