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Basic Question 7 of 13
Which is the most correct statement? Accounting changes can be undertaken ______.
B. either voluntarily by the firm or when mandated by accounting standards
C. in accordance with GAAP
A. when mandated by accounting standards
B. either voluntarily by the firm or when mandated by accounting standards
C. in accordance with GAAP
User Contributed Comments 3
| User | Comment |
|---|---|
| Davidrh | Why not in accordance with GAAP? Don't GAAP regulate, whether a firm MUST change or MAY change accounting procedures? A firm can't change accounting procedures voluntarily unless allowed by GAAP (if they want to be in compliance). An explanation would be greatly appreciated. |
| jzty | For example, a change of depreciation method will cause accounting changes. This is voluntary by the firm. |
| Fortschrit | I agree that it would be good to get an explanation on why c is wrong here. |
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Learning Outcome Statements
describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, unusual or infrequent items) and changes in accounting policies
CFA® 2024 Level I Curriculum, Volume 2, Module 2.