According to the FASB, which approach is required for reporting changes in an accounting principle?
A) Currently
B) Retrospectively
C) Prospectively
D) Futuristically

Question

Quizplus · Accepted Answer

The Financial Accounting Standards Board (FASB) requires that changes in accounting principle be reported retrospectively. This means that prior period financial statements are adjusted to reflect the change as if the new accounting principle had always been used.

According to the FASB, Which Approach Is Required for Reporting