Changes in accounting estimates are accounted for in current and future periods.

Name: Changes in accounting estimates are accounted for in current and future periods.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Changes in accounting estimates are not considered errors and therefore, they are accounted for in the current period and the future periods affected by the change. This is in contrast to prior period adjustments, which are accounted for retrospectively in the financial statements of the period in which the adjustment is identified.

Changes in Accounting Estimates Are Accounted for in Current and Future