Question
Why does a reporting entity change require restating all prior periods?
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Answer
To present results as if the entity always existed.
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Question
Why does a reporting entity change restate income and per-share data?
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Answer
Because the financial statements must reflect the new entity historically.
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Question
What is the conceptual difference between an estimate change and an error?
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Answer
An estimate change is new information; an error is past mistake.
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Question
Why is the oldest presented period used for retained earnings adjustments?
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Answer
It is the earliest period that must be brought into compliance.
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