Which of the following disclosures is required for a change from LIFO to FIFO?
A) The cumulative effect on prior years, net of tax, in the current retained earnings statement
B) The justification for the change
C) Restated prior year income statements
D) All of these are required.

Question

Quizplus · Accepted Answer

All of these are required for a change from LIFO to FIFO. The cumulative effect on prior years, net of tax, in the current retained earnings statement is required to disclose how the change affects the company's financial statements. The justification for the change should be disclosed to provide transparency to investors and stakeholders. Restated prior year income statements are necessary to show the impact of the change on past financial performance.

Which of the Following Disclosures Is Required for a Change