method is used 3. A change from deferring and amortizing development costs to immediate recognition of development costs as expense; the change to immediate recognition arises because the company does not have the resources to market the new product adequately A change in the method of accounting for inventory for tax purposes to conform to the method of accounting for inventory for financial accounting purposes; as a result, both future and current taxes payable changed substantially A change from the periodic inventory method to the perpetual inventory method with the introduction of scanning equipment and updated computer software (FIFO used)