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Basic Question 19 of 19
Which change needs to be applied retrospectively to the financial statements?
B. A company determines it must change the residual value of an asset from $2,000 to $3,000.
C. Neither of these changes should be applied retrospectively.
A. A company wants to change the useful life of an asset from 5 years to 7 years.
B. A company determines it must change the residual value of an asset from $2,000 to $3,000.
C. Neither of these changes should be applied retrospectively.
User Contributed Comments 4
| User | Comment |
|---|---|
| Yrazzaq88 | I believe the only change retrospectively, is if the company decided it wanted to change to Double Declining balance? No? |
| praj24 | no |
| xd2163 | Changing in accounting estimate only requires changes be applied prospectively |
| khalifa92 | retrospective changes are only associated with changes in accounting standards. |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
analyze and interpret financial statement disclosures regarding property, plant, and equipment and intangible assets
CFA® 2024 Level I Curriculum, Volume 2, Module 7.