صفحه 8: ”In cumulative-type change, supplementary information for all prior periods presented should be shown on a pro forma basis.…….. 6.Changes from LIFO to another inventory method require the retroactive ...“
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صفحه 8: ” justification for the change should be given.Part I. Comprehension ExercisesA.Put “T” for true and “F” for false statements. Justify your answers.…….. 1.There are three types of accounting changes, ...“
Companies often make changes in their use of accounting principles or accounting estimates. For example: they may decide to change from one method of depreciating their plant and equipment to another. Or they may decide that an original estimate of the life of equipment was incorrect and should be revised. Such changes are referred to in accounting literature as “accounting changes”. Occasionally, a company discovers that errors were made in a previous accounting period and it now wishes to correct them. These are referred to as “error correction”. Both accounting changes and error corrections are