Which of the following is (are) the proper time period(s) to record the effects of a change in accounting estimate?
A) Current period and prospectively
B) Current period and retrospectively
C) Retrospectively only
D) Current period only

Question

Quizplus · Accepted Answer

When there is a change in accounting estimate, it should be recorded in the current period and prospectively going forward. This means that the effect of the change should be reflected in the financial statements of the current period, as well as any future periods that the change will impact. Retrospective application of the change is not required or appropriate in this case. Therefore, only option A is the correct answer.

Which of the Following Is (Are) the Proper Time Period(s)