All of the following statements about changes in accounting policy are correct EXCEPT
A) are sometimes required because of a change in accounting standards.
B) do not result in changes to prior periods.
C) are allowed if it results in the financial statements providing more relevant and reliable information.
D) are implemented retroactively.

Question

Quizplus · Accepted Answer

Changes in accounting policy are indeed implemented retroactively, meaning they do require adjustments to prior periods to ensure consistency and comparability across financial statements. This is contrary to option B, which incorrectly states that they do not result in changes to prior periods.

All of the Following Statements About Changes in Accounting Policy