CH 20
Which of the following is a change in accounting estimate?
Change in actuarial calculations pertaining to pension plan
A change in depreciation method is treated as a
change in estimate achieved by a change in accounting principle.
When it is not possible to distinguish between a change in principle and a change in estimate, the change should be treated as a change in
estimate
A voluntary accounting principle change:
must be justified as being preferable
When it is impracticable to determine the cumulative effect of prior years of a voluntary change in accounting principle, then the new method is applied ____
prospectively
When financial statements are revised to reflect the impact of a change in accounting principle, the ______ approach is used.
retrospective
An example of a change in accounting estimate that is effected by a change in accounting principle is a change in
depreciation methods.