Which of the following is characteristic of a change in an accounting estimate?
A) It usually need not be disclosed
B) It does not affect the financial statements of prior periods
C) It should be reported through the restatement of the financial statements
D) It makes necessary the reporting of pro forma amounts for prior periods

Question

Quizplus · Accepted Answer

Changes in accounting estimates affect only current and future periods, not past financial statements. They are adjustments based on new information or new developments and do not require restatements of previously issued financial statements.

Which of the Following Is Characteristic of a Change in an Accounting