What characterizes a change in accounting estimate versus a change in principle? a) It must be approved by shareholders b) It requires retroactive application to all prior periods c) It affects future periods only and doesn't require restatement d) It only applies to depreciation methods

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 7GI
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What characterizes a change in accounting estimate
versus a change in principle?
a) It must be approved by shareholders
b) It requires retroactive application to all prior periods
c) It affects future periods only and doesn't require
restatement
d) It only applies to depreciation methods
Transcribed Image Text:What characterizes a change in accounting estimate versus a change in principle? a) It must be approved by shareholders b) It requires retroactive application to all prior periods c) It affects future periods only and doesn't require restatement d) It only applies to depreciation methods
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