Explore BrainMass

Explore BrainMass

    Difference between accounting changes and accounting errors

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    What is the difference between accounting changes and accounting errors? What are some similarities and differences in how they affect the financial statements?

    © BrainMass Inc. brainmass.com October 2, 2020, 1:27 am ad1c9bdddf

    Solution Preview

    Four Types of Accounting Changes
    1. Change in accounting principle-Change from one generally accepted accounting
    principle to another.
    2. Change in accounting estimate-Revision of an estimate because of new information or
    new experience.
    3. Change in reporting entity-Change from reporting as one type of entity to another type
    of entity.
    4. Correction of an error-Correction of an error caused by a transaction being recorded
    incorrectly or not at ...

    Solution Summary

    The four types of accounting changes are discussed and how each is treated for GAAP.