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Topic: reporting a change in principle (

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dev03
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Joined: 27 Apr 2010
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Posted: 23 Jul 2010 at 12:31 \| IP Logged

can anyone explain me how changes in accounting principle are treated ............Thanks in advance

lkbcpa2b
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Posted: 23 Jul 2010 at 12:49 \| IP Logged

Retrospectively

Adjust beginning retained earnings in the earliest period presented for the cumulative effect of the change, and, if prior period financial statements are presented, they should be restated.

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dev03
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Posted: 23 Jul 2010 at 12:52 \| IP Logged

Retrospectively means balance sheet is recasted.........So when is cumulative effect shown please help I am cofused.........

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