In a recent annual report, J.M. Smucker, changed a previously reported inventory amount of $52 million to $54 million. How can an accounting change cause a company to increase a previously reported inventory amount? 

Are all accounting changes reported this way? If not, what are the other approaches to reporting accounting changes and provide an example for each?

Answer rating: 100% (QA)

1 Essentially an accounting change can cause a company to increase a previously reported inventory amount in a number of ways One possibility is that a company can recognize inventory that was previou... View the full answer