U.S.GAAP and IFRS require firms to retrospectively apply any changes in accounting principle by recalculating the income for prior periods under the new accounting principle, if it at all feasible.

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Both U.S.GAAP and IFRS require retrospective application of changes in accounting principle whenever it is feasible, in order to facilitate comparability of financial statements across different periods. This means that firms need to recalculate the income for prior periods under the new accounting principle, so that any potential impact of the change can be properly evaluated and disclosed.

USGAAP and IFRS Require Firms to Retrospectively Apply Any Changes