AC311 Chapter 20
changes in account principle
Change from one generally accepted accounting principle to another
prior period adjustment
an addition or reductio in the beginning balance of retained earnings due to an error corrections
changes in accounting estimate
includes revision of an amount due to new information or new experience
estimate
new information that becomes available about an event or transaction frequently results in a change in _____
change in reporting entity
requires financial statements of prior periods to be revised retrospectively
prospective approach
requires that no change is made to previous years' financial statements
accounting error
restatement of financial statements
accounting changes
this includes changing in accounting principle, accounting estimate, and reporting entity
retrospective
when financial statements are revised to reflect the impact of a change in accounting principle this approach is used ____
change in estimate
when it is impossible to distinguish between a change in principle and a change in estimate, the change should be treated as a ___
prospective
when it is impracticable to measure the period specific effects of change in accounting principle this approach should be used