Answered step by step
Verified Expert Solution
Question
1 Approved Answer
When an entity changes its accounting from one generally accepted method to another generally accepted method: financial statements of all prior years must be restated
When an entity changes its accounting from one generally accepted method to another generally accepted method:
-
financial statements of all prior years must be restated to maintain comparability.
-
the dollar effect of the change on both the balance sheet and income statement must be disclosed.
-
accounting changes like this are not permitted.
-
an explanatory note stating that the change was approved by the Financial Accounting Standards Board is required.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started