If a change in an accounting estimate affects the current period and future periods, the retrospective reporting approach must be used.

Name: If a change in an accounting estimate affects the current period and future periods, the retrospective reporting approach must be used.
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Question

Quizplus · Accepted Answer

Changes in accounting estimates are accounted for prospectively, affecting the current and future periods only, not retrospectively.

If a Change in an Accounting Estimate Affects the Current