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The general presumption in preparing financial statements in accordance with generally accepted accounting principles is that A change in accounting principle is permissible if the

image text in transcribed The general presumption in preparing financial statements in accordance with generally accepted accounting principles is that A change in accounting principle is permissible if the entity is able to justify the new principle as preferable to the existing principle. A change in previously issued financial statements is never permissible. A change in accounting principle is permissible only when a newly issued official pronouncement requires a change in accounting principle. A change in accounting principle is permissible only to correct the effect of an error in previously issued financial statements

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