Which of the following accounting changes requires the restatement of financial statements presented for prior years?
A) A change in depreciation method from the straight-line method to the double-declining-balance method
B) A change from the LIFO to the FIFO inventory valuation method
C) A change from the FIFO to the LIFO inventory valuation method
D) A change in the useful life used in the depreciation calculations for a company's manufacturing equipment

Question

Quizplus · Accepted Answer

A change from the LIFO to the FIFO inventory valuation method is considered a change in accounting principle, which requires retrospective application and restatement of prior financial statements to ensure comparability.

Which of the Following Accounting Changes Requires the Restatement of Financial