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F1 question


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#1 amrdowidar

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Posted 17 January 2014 - 09:57 PM

hi all,

 i have a couple of questions on financial 1

q1- if the company changed changed its accounting principle from IFRS to GAAP, will the financial statements changes retroactively ?

q2- if the changes one of its accounting principle, how would the R/E presented in case of comparative/non comperative financial statement ?



#2 bella.dreamer

bella.dreamer

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Posted 18 January 2014 - 10:42 PM

q1, yes.

q2, when change an accounting principle, you restate the previous Financial statements. If you are not presenting previous year financial statements, then you adjust the beginning retained earnings.