If an accounting change has no material effect on the financial statements in the current year,but the change is reasonably certain to have a material effect in later years,the change should be:
A)Referred to in the auditor's report for the current year.
B)Disclosed in the notes to the financial statements of the current year.
C)Disclosed in the notes to the financial statements and referred to in the auditor's report for the current year.
D)Treated as a subsequent event.

Question

Quizplus · Accepted Answer

Accounting changes that have no material effect in the current year but are expected to have a material effect in later years are considered to be a future event. Such events are required to be disclosed in the footnotes to the financial statements of the current year. However, they do not require disclosure in the auditor's report or treatment as a subsequent event.

If an Accounting Change Has No Material Effect on the Financial