Which of the following accounting changes is always accounted for prospectively?

A) change in accounting estimate
B) change in reporting entity
C) change in accounting principle
D) correction of an error

Question

Which of the following accounting changes is always accounted for prospectively?A) change in accounting estimateB) change in reporting entityC) change in accounting principleD) correction of an error

Anders D'Avirro · Accepted Answer

Final Answer : A, Explanation :  A change in accounting estimate is always accounted for prospectively. This means that the change is applied to current and future periods and does not require restatement of prior periods.

Which of the following accounting changes is always accounted for prospectively?

A) change in accounting estimate
B) change in reporting entity
C) change in accounting principle
D) correction of an error

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