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 September 20, 2018, 6:13 pm ad1c9bdddf - https://brainmass.com/business/correcting-accounting-errors/difference-between-accounting-changes-accounting-errors-384421
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
3. Change in reporting entity-Change from reporting as one type of entity to another type
4. Correction of an error-Correction of an error caused by a transaction being recorded
incorrectly or not at ...
The four types of accounting changes are discussed and how each is treated for GAAP.