When a public shareholding company changes an accounting policy voluntarily, it has to (a) Inform shareholders prior to taking the decision. (b) Account for it retrospectively. (c) Treat the effect of the change as an extraordinary item. (d) Treat it prospectively and adjust the effect of the change in the current period and future periods.
When a public shareholding company changes an accounting policy voluntarily, it has to (a) Inform shareholders prior to taking the decision. (b) Account for it retrospectively. (c) Treat the effect of the change as an extraordinary item. (d) Treat it prospectively and adjust the effect of the change in the current period and future periods.
Chapter7: Corporations: Reorganizations
Section: Chapter Questions
Problem 4DQ
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When a public shareholding company changes an accounting policy voluntarily, it has to
(a) Inform shareholders prior to taking the decision.
(b) Account for it retrospectively.
(c) Treat the effect of the change as an extraordinary item.
(d) Treat it prospectively and adjust the effect of the change in the current period and future periods.
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