When a company changes from LIFO to another inventory method,the change is reported

Question

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When a company changes from LIFO to another inventory method, the change is reported using the retrospective approach. This means that the financial statements for prior years are restated to reflect the new inventory method. It is important to note that the retrospective approach is required by Generally Accepted Accounting Principles (GAAP) for changes in accounting principles unless it is impractical to do so. Therefore, option A is not correct. An error correction would only be applicable if the original accounting for inventory was incorrect, so option B is not correct. Finally, a change in accounting estimate is typically a change in the accounting method or process, but not in the fundamental principles applied, so option C is not correct either.

When a Company Changes from LIFO to Another Inventory Method,the