Accounting treatment for changes in accounting principle are best described as: Multiple Choice Chose one of anwers   Changes in accounting principle that are only permitted when FASB issues a standard that revises GAAP.   Changes in accounting principle that are always accounted for using the retrospective approach which requires only a restatement of prior years’ presented financial information.   Changes in accounting principle that may require both a restatement of prior years’ financial information and the recording of a cumulative adjustment to retained earnings.   Tax effects are ignored when reporting changes in accounting principles.

Question

Accounting treatment for changes in accounting principle are best described as:

Multiple Choice Chose one of anwers

  •  
    Changes in accounting principle that are only permitted when FASB issues a standard that revises GAAP.
  •  
    Changes in accounting principle that are always accounted for using the retrospective approach which requires only a restatement of prior years’ presented financial information.
  •  
    Changes in accounting principle that may require both a restatement of prior years’ financial information and the recording of a cumulative adjustment to retained earnings.
  •  
    Tax effects are ignored when reporting changes in accounting principles.

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Accounting Principles

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