Which of the following is an example of a change in accounting principle that is accounted for retrospectively?
A) an Accounting Standards Update has been issued and a former principle is no longer generally accepted
B) initial adoption of a generally accepted accounting principle because of events or transactions occurring for the first time
C) change to a generally accepted accounting principle from a principle that is not generally accepted
D) modification of an accounting principle for transactions or events that are clearly different in substance from those previously occurring

Question

Quizplus · Accepted Answer

A change in accounting principle that is accounted for retrospectively typically occurs when an Accounting Standards Update has been issued, rendering a former principle no longer generally accepted. This requires the reevaluation of previous financial statements as if the new principle had always been in place.

Which of the Following Is an Example of a Change