Disadvantages of using the retrospective application method do not include which of the following?
A)Numbers must be changed on previously released financial statements.
B)It is inconsistent with the "all-inclusive income concept."
C)It has possible impacts on contractual arrangements.
D)All financial statements consistently apply the same revenue recognition principles.

Question

Quizplus · Accepted Answer

Option D is not a disadvantage of using the retrospective application method. In fact, it is an advantage as it ensures consistency in applying revenue recognition principles across all financial statements. A, B, and C are all valid disadvantages of using the retrospective application method.

Disadvantages of Using the Retrospective Application Method Do Not Include