Question: When the FASB issues a new generally accepted accounting principle, it may require companies to apply the new principle prospectively, or to account for the

When the FASB issues a new generally accepted accounting principle, it may require companies to apply the new principle prospectively, or to account for the change by the retrospective adjustment method.

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Why do you think that the FASB requires one of two different transition methods when a company adopts a newly required accounting principle? Do you agree with the use of two alternative methods?

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