Please be advised that this is only a discussion not a test or assignment and not an essay. I required at least 200 words. Thank You
Assess and discuss the criteria and procedures involved in accounting changes and error analysis. What are the major reasons why companies change accounting methods? Explain the three approaches that have been suggested for reporting changes in accounting principles.
The main criteria that is involved in implementing accounting changes is that the error should be material or significant in nature. The considerations involved in decision making include analysis of types of errors, correcting entries required to address the error and evaluation of restatement of financial statements. The new change should adhere to prescribed ...
This solution of 205 words discusses criteria and procedures involved in accounting changes and error analysis. It lists 5 main reasons why companies change accounting methods and three approaches used in reporting changes in accounting principles. References used are included.