Question

What reporting requirements does retrospective application require?

Answer 1

Answer:

Retrospective application means that you are applying the changes in principle to the financial result of previous period, as if the new principle had always been in use. You are required to retrospectively apply a change in accounting prnciple to all prior periods, unless it is impracticable to do so.

You must disclose policy to be used from retrospective period and financial impact of this policy, also if there is change is accounting standard in financial statement then it should be mention clearly that we are applying this accounting standard from retrospectice and here is the impact of this change.