GAAP requires comparative financial statements to be retroactively adjusted to include data for the acquired company for periods prior to the acquisition.

Question

Quizplus · Accepted Answer

GAAP does not require comparative financial statements to be retroactively adjusted to include data for the acquired company for periods prior to the acquisition. Instead, the acquisition is reflected in the financial statements from the acquisition date forward.

GAAP Requires Comparative Financial Statements to Be Retroactively Adjusted to Include