APB Opinion No. 20 was concerned with accounting changes. Recently SFAS No. 154 changed the accounting treatment for some accounting changes.

Required:

a. Define, discuss, and illustrate each of the following in such a way that one can be distinguished from the other:

i. An accounting change ii. A correction of an error in previously issued financial statements

b. Discuss the justification for a change in accounting principle.

c. Discuss the reporting of accounting changes that was required by APB Opinion No. 20.

d. Discuss how accounting changes are to be reported under the provisions of SFAS No. 154.