Which of the following statements is true with respect to financial statement reporting a change in accounting principle?
A) Comparability across periods is impaired
B) Only a footnote is required to report the change
C) Changes in both depreciation methods and inventory methods are reported retroactively.
D) Management must show that the new accounting principle is preferable to the old method.

Question

Quizplus · Accepted Answer

Management must demonstrate that the new accounting principle is preferable to ensure that the change is justified and provides more relevant or reliable financial information.

Which of the Following Statements Is True with Respect to Financial