Changes in accounting principles generally are reported as
A) adjustments to current and/or prior period statements.
B) extraordinary items.
C) adjustments to current period statements only.
D) adjustments to prior period statements.

Question

Quizplus · Accepted Answer

Changes in accounting principles are applied retrospectively and are reported as adjustments to prior period statements. This means that financial statements from prior periods may need to be restated to reflect the new accounting principle.

Changes in Accounting Principles Generally Are Reported as