Prior years' financial statements are restated under the:

Question

Quizplus · Accepted Answer

Prior years' financial statements are restated under the retrospective approach, which requires adjusting the financial statements of prior periods to reflect the impact of a change in accounting principle. This approach provides users with comparative financial statements that are more meaningful and reliable. The current and prospective approaches do not require restating prior years' financial statements.

Prior Years' Financial Statements Are Restated Under The