Change in accounting principle: two conditions for a change.
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A change in accounting principle occurs when the principle used in the current year is different from the one used in the preceding year. Name the two conditions that need to be met for a change to be permitted?
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Solution Summary
The solution explains the two conditions needed for a change in accounting method to be permitted. Each condition contains 3 sentences of explanation.
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First, it should be noted that changes in principle are presumed to be material changes. If not material, the issue would not be raised including the accompanying disclosures in the financial statements.
1. The change must be from one acceptable ...
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