Various types of accounting changes can affect the financial statements of a private business enterprise differently. Assume that each item on the following list would have a material effect on the financial statements of a private enterprise in the current year:

1. A change to the income taxes payable method from the tax liability method
2. A change in the estimated useful life of previously recorded capital assets where the straight-line depreciation method is used
3. A change from deferring and amortizing development costs to immediate recognition. The change to immediate recognition arises because the company does not have the resources to market the new product adequately.
4. A change from including the employer share of CPP and EI premiums as a separate payroll tax expense to including them with salaries and wages expense on the income statement
5. The correction of a mathematical error in inventory costing that was made in a prior period
6. A change from straight-line amortization to a double-declining method in recognition of the effect that technology has on the pattern of benefits received from the asset’s use
7. A change from presenting unconsolidated statements (using the cost method for the subsidiaries) to presenting consolidated statements for the company and its two long-held subsidiaries
8. A change in the method of accounting for leases for tax purposes to conform with the financial accounting method; as a result, both future and current taxes payable changed substantially
9. A change from the periodic inventory method to the perpetual method with the introduction of scanning equipment and updated computer software
10. A change in an accounting method due to a change in a primary source of GAAP

Instructions
Identify the type of accounting change that is described in each item, and indicate whether the prior years’ financial statements must be restated when they are presented in comparative form with the current year’s statements. Also indicate if the company is required to justify the change.