Quiz 20.20 – Accounting Changes Exempt from Retrospective Restatement
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
For which type of accounting change is retrospective restatement usually not used?
For which type of accounting change is retrospective restatement usually not used?
What happens to prior years’ financial statements when an accounting change is reported under the retrospective approach?
Under which approach are prior years’ financial statements restated for accounting changes?
What is required under the modified retrospective approach for accounting changes?
Which of the following changes would require the use of the retrospective approach for accounting purposes?
Which change in accounting should NOT use the retrospective approach?
Which of the given changes in accounting principle is NOT typically accounted for by retrospectively revising prior financial statements?
Which option(s) correctly identify the appropriateness of retrospective restatement for changes in accounting estimates and accounting principles?
When should companies report the cumulative effect of an accounting change in the income statement?
Where is the cumulative effect of most changes in accounting principle reported in the financial statements?