Changes in accounting principles may be handled prospectively if insufficient information is available to properly account for the change.

Question

Quizplus · Accepted Answer

This is correct as per Generally Accepted Accounting Principles (GAAP), if there is insufficient information available to properly account for the change, the change in accounting principles can be handled prospectively. However, if there is sufficient information available, the change may need to be handled retrospectively.

Changes in Accounting Principles May Be Handled Prospectively If Insufficient