A) Company's Acctg Change Disclosure----
Find a company which had a change in accounting principle recently. Many companies have changes in accounting principles. One way to facilitate this process is to review the Independent Auditors' Report for a company, since a company is required to disclose any material changes in accounting principles there. Briefly summarize anything you thought interesting about this company's accounting change(s).
Expand response Mark as Read I reviewed GM's 2006 Annual re Send Email to Author Stephen Weiss
B) Pick a Recent FASB----
How was the effect of its change in accounting from previous GAAP accounted for (Examples: Applied prospectively, retrospectively or cumulatively with a catchup entry)?
C) Motivations for Acctg Changes/Errors----
What are some of the motivations for changes in accounting principles, changes in accounting estimates and accounting errors? What do you think were the major motivations for CEOs, CFOs, Controllers and Accounting personnel committing financial statement fraud in the many recent debacles like Enron, Worldcom, HealthSouth, Global Crossing, Xerox, Tenet Healthcare, Qwest, Fannie Mae, Freddie Mac, Computer Associates, Halliburton, Comverse Technology and the many others? Do you think there may be different motivations depending upon the accounting level of the person?
D) Web Article on Chapter 22----
Have you found an interesting web article regarding any of the concepts covered in Chapter 22 like changes in accounting, changes in accounting estimates and accounting errors. Please provide a brief summary of this web article, as well as a Weblink.
To kick off these web articles, here's what I think is an exceptionally good article on the new FAS 154. I think it is worth a read. Any thoughts?
IBM UNDERWENT AN ACCOUNTING CHANGE RECENTLY.
The effect of the accounting change is that there will be an increase of $0.1 billion in retained earnings. The company will reclassify an estimated $0.2 billion of unrecognized tax benefits from current to non-current liabilities because there is no payment of cash required within one year of the date of the balance sheet. This change will be adopted from the beginning of the adoption January 1, 2007.
Why this change is interesting is because it has taken place in response to an FASB Interpretation No. 48 wherein accounting for Uncertainty in Income Taxes under FASB Statement No. 109 is taken into account.
PICK A RECENT FASB
Issue no 07-3
Date Discussed March 15, 2007
Non refundable advance payments for goods and services that will be used for research and development activities ...
This answer provides you an excellent discussion on accounting questions