Goodwin Corp., which began operations in January 2008, follows IFRS and is subject to a 40% income tax rate. In 2011, the following events took place:
1. The company switched from the zero-profit method to the percentage-of-completion method of accounting for its long-term construction projects. This change was a result of hiring an experienced estimator, which made it possible to estimate completion costs.
2. Due to a change in maintenance policy, the estimated useful life of Goodwin€™s fleet of trucks was lengthened.
3. It was discovered that a machine with an original cost of $100,000, residual value of $10,000, and useful life of four years was expensed in error on January 23, 2010, when it was acquired. This situation was discovered after preparing the 2011 adjusting entries but prior to calculating income tax expense and closing the accounts. Goodwin uses straight-line depreciation and takes a full year in the year of acquisition. The asset€™s cost had been appropriately added to the CCA class in 2010 before the CCA was calculated and claimed.
4. As a result of an inventory study early in 2011 after the accounts for 2010 had been closed, management decided that the average costing method would provide a more relevant presentation in the financial statements than does FIFO costing. In making the change to average cost, Goodwin determined the following:

Instructions
(a) Analyze each of the four 2011 events described above. For each event, identify the type of accounting change that has occurred, and indicate whether it should be accounted for with full retrospective application, partial retrospective application, or prospectively.
(b) Prepare any necessary journal entries that would be recorded in 2011 to account for events 3 and 4.

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Date Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008 Inventory FIFD Cost $90,000 130,000 200,000 Inventory Average Cost 80,000 100,000 150,000