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Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
1. Prospective approach
The approach now used for changes in depreciation methods
2. Changes in accounting principle
Required for all material accounting changes and error corrections.
3. Changes in reporting entity
Accounting changes always handled retrospectively.
4. Error corrections
Most are handled under the retrospective approach.
5. Disclosure note
Involves consolidated financial statements.
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