A change in estimate should
A) result in restatement of prior period statements.
B) be handled in current and future periods.
C) be handled in future periods only.
D) be handled retroactively.

Question

Quizplus · Accepted Answer

A change in estimate should be handled in the current and future periods to ensure consistency in financial reporting. Restatement of prior period statements is not required unless the change is related to a correction of an error. The change should not be handled retroactively, but rather prospectively from the point of the change.

A Change in Estimate Should