Asked by thomas girgis on Mar 10, 2024
Verified
Exceptions exist in the retrospective restatement requirements when accounting for errors under GAAP IFRS I. No No II. No Yes III. Yes Yes IV. Yes No \begin{array}{lll}&\text { GAAP }&\text { IFRS }\\\text { I. } & \text { No } & \text { No } \\\text { II. } & \text { No } & \text { Yes } \\\text { III. } & \text { Yes } & \text { Yes }\\\text { IV. } & \text { Yes } &\text { No } \end{array} I. II. III. IV. GAAP No No Yes Yes IFRS No Yes Yes No
A) I
B) II
C) III
D) IV
A) I
B) II
C) III
D) IV
Retrospective Restatement
The process of revising previously issued financial statements to correct errors or to adjust for changes in accounting policies.
IFRS
International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.
- Differentiate between the GAAP and IFRS accounting principles, particularly in terms of how they address corrections of errors and the practice of retrospective restatement.
Verified Answer
KH
Kiersten Harvey
Mar 10, 2024
Final Answer :
B
Explanation :
The exceptions to retrospective restatement requirements are stated in paragraph 42 of ASC 250-10-S99-5, which includes exceptions for immaterial errors, certain errors related to prior periods that are impractical to determine, and certain changes in accounting principle that are impractical to determine.
Learning Objectives
- Differentiate between the GAAP and IFRS accounting principles, particularly in terms of how they address corrections of errors and the practice of retrospective restatement.