Which of the following is (are) the proper time period (s) to record the effects of a change in accounting estimate? Current period and retrospectively Current period only Retrospectively only Current period and prospectively

Retrospectively only

Explanation:

Changes in accounting estimate is applied in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors.

Accounting estimates are the estimations used by management to recognize amounts in the financial statements where precise values cannot be determined.

Where an accounting estimate has to be revised based on information that was already available at the time of preparation of prior period financial statements, the effect of revision must be recognized retrospectively as it constitutes a correction of prior period error.