medium · Financial Accounting assets
If a company switches its inventory costing method from FIFO to Weighted-Average, how should this change be reported in the financial statements according to ASC 250?
- As a cumulative effect adjustment to the current year's Net Income
- Only in the footnotes, with no changes to the numerical data on the face of the statements
- Retrospectively, by restating all prior period financial statements presented
- Prospectively, starting from the first day of the current fiscal year
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