Retrospective application is required for all
A) errors and non-mandated policy changes.
B) changes in estimates and non-mandated policy changes.
C) errors and changes in estimates.
D) changes in estimates.

Question

Quizplus · Accepted Answer

Retrospective application is required for errors and non-mandated policy changes. This means that when an entity corrects an error or voluntarily changes an accounting policy (not due to a new standard), it must apply the change as if it had always been in effect. Changes in estimates, on the other hand, are accounted for prospectively.

Retrospective Application Is Required for All