Question: 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

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?

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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 full answer

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