Under GAAP when company changes from FIFO to LIFO or vica versa, do they need to REISSUE (retrospectively) past financial statements?
I thought they did but a Schweser practice question said it’s an exception to the rule. I’m confused.
Under GAAP when company changes from FIFO to LIFO or vica versa, do they need to REISSUE (retrospectively) past financial statements?
I thought they did but a Schweser practice question said it’s an exception to the rule. I’m confused.
For change from LIFO to another method , US GAAP require a retrospective restatement of inventory and retained earnings. But if co decides change to LIFO method then retrospective adjustments are not made to financial statements.
Oh I see, thanks for clarifying