2/22/2021 Q8-Accounting Changes (page 2 of 30)

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Question 2
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Which statement is false pertaining to accounting changes?

Select one:
a. The effect of a change in the expected pattern of consumption of economic benefits of a depreciable asset shall be
included in the statement of retained earnings as an adjustment of the beginning balance.
b. A change in reporting entity is effected by restating all prior period financial statements in accordance with the new
method of presenting the current financial statements of the new reporting entity
c. Accounting estimates change as new events occur, more experience is acquired or additional information is
obtained.
d. Retroactive treatment is not appropriate for changes in estimate because these are normal recurring adjustments that
are the natural result of the use of estimate.

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