Does the adoption of a new accounting principle for events or transactions occurring for the first time represent a change in accounting principle?
Answer to relevant QuestionsBriefly describe the process followed by the FASB for issuing an Accounting Standard Update. What are direct and indirect effects of a change in accounting principle? How does a company account for any direct and indirect effects? Newton Company introduced a line of laptop computers in 2016 that carry a 1-year assurance-type warranty. Based on experience with other computers that it sells, Newton estimated warranty costs as 3% of net sales. Net sales ...The following are independent events: a. A partnership is preparing to become a corporation and sell stock to the public. At this time, it decides to switch from accelerated to straight-line depreciation. b. A company has ...At the beginning of 2017, Flynne Company decided to change from the LIFO to the FIFO inventory cost flow assumption. The following data are available: The tax rate is 30%. Flynne has a simple capital structure and 10,000 ...
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