When retrospective application is deemed impracticable, the reporting entity must disclose the reason for not restating the comparative amounts.

Question

Quizplus · Accepted Answer

When retrospective application is deemed impracticable, accounting standards such as IFRS and GAAP require the reporting entity to disclose the reason why it has not restated the comparative amounts, ensuring transparency and providing users of financial statements with the context behind the accounting choices made.

When Retrospective Application Is Deemed Impracticable, the Reporting Entity Must