A change in accounting principle is considered appropriate only when it is demonstrated that the newly adopted principle is preferable to the old one.

Question

Quizplus · Accepted Answer

A change in accounting principle is considered appropriate when it is justified that the new principle provides more reliable and relevant information than the previous one, aligning with the goal of presenting financial information that better reflects the economic reality of the organization.

A Change in Accounting Principle Is Considered Appropriate Only When