Asked by
Teigen Marchant
on Oct 28, 2024
Verified
Normally, a material effect from changing accounting principles should be reported
A) as an extraordinary item
B) as a retrospective adjustment
C) by including the cumulative effect of the change as a separate line item in current income from continuing operations
D) by including the cumulative effect of the change on prior periods' earnings as a component of net income in the period of the change
Accounting Principles
The foundational concepts and guidelines that govern the field of accounting, such as revenue recognition, matching principle, and full disclosure.
Extraordinary Item
Events or transactions that are both unusual in nature and infrequent in occurrence, impacting a company's financial position.
- Gain an understanding of the basics and repercussions associated with changes in accounting principles and estimates.
- Comprehend the amendments of former periods and their consequences on financial statements.
Verified Answer
BL
Learning Objectives
- Gain an understanding of the basics and repercussions associated with changes in accounting principles and estimates.
- Comprehend the amendments of former periods and their consequences on financial statements.