Question

Which of the following items would require a retrospective (i.e. prior period) adjustment?

A. Post acquisition of a subsidiary to reflect what the prior years earnings would have been.
B. Change in estimate.
C. Immaterial error.
D. Change in accounting principle

Answer 1

Items that would require a retrospective adjustment include post-acquisition of a subsidiary, change in estimate, and change in accounting principle.

Step-by-step explanation:

A. Post acquisition of a subsidiary to reflect what the prior years earnings would have been.
B. Change in estimate.
D. Change in accounting principle.