Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.

1. Prospective approach

The approach now used for changes in depreciation methods

2. Changes in accounting principle

Required for all material accounting changes and error corrections.

3. Changes in reporting entity

Accounting changes always handled retrospectively.

4. Error corrections

Most are handled under the retrospective approach.

5. Disclosure note

Involves consolidated financial statements.