Reference no: EM132608169

Problem 1: Which of the following statements regarding making changes in accounting principles is least accurate?

Option 1: Changes in accounting estimates are now treated the same as changes in accounting principles.

Option 2: A change in accounting principle is a change from one generally accepted accounting principle to another generally accepted principle. The firm making the change must justify the change.

Option 3: The general rule is retrospective application.

Option 4: The reported prior year statements should be restated to reflect the new accounting principle.