CAF-1 · Chapter 10 · Question 4 of 15
If it is 'impracticable' to determine the period-specific effects of a change in accounting policy on comparative information, what should the entity do?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Apply the new policy prospectively from the start of the earliest period practicable.
Explanation
When it is impracticable to determine period-specific effects, the entity applies the new policy to the carrying amounts of assets and liabilities as at the beginning of the earliest period for which retrospective application is practicable.
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