1) Should a company be allowed to continuously change accounting principles every year....for example FIFO in 2020, LIFO in 2021, Weighted average in 2022 and FIFO in 2023?

2) What is a correction of error and how should it be reported in the financial statements?

3) How does a correction of an error treated?

4) Can you name a company that disposed of a component of the business and describe how the disposal was treated in its income statement?

5) :What is meant by tax allocation within a period and what is the justification for this?

6) Company A decided to close two small pulp mills . These two closings do not represent a major shift in strategy for the company. Would these two closings be reported in a separate section titled "Discontinued Operations after income from continuing operations? Please discuss .Also if the closings are not reported as discontinued operations , where should the gain or loss be reflected on the income statement.

Answer rating: 100% (QA)

There is no right or wrong answer to this question as it depends on the specific situation of the company in question Some companies may benefit from changing their accounting principles on a yearly b... View the full answer