APB opinion no. 20 was concerned with accounting changes. SFAS No. 154 (see FASB ASC 250) changes the accounting treatment for some accounting changes.

Required:

A) Define, discuss, and illustrate each of the following in such a way that one can be  distinguished from the other:

i. An accounting change

ii. A correction of an error in previously issued financial statements

B) Discuss the justification for a change in accounting principle.

C) Discuss the reporting of accounting changes that was required by APB Opinion No. 20

D) Discuss how accounting changes are to be reported under the provisions of FASB ASC 250.

Answer rating: 100% (QA)

Ai An Accounting change Means a change in the accounting principle or accounting estimate or the reporting entity A correction of error in the previou... View the full answer