1) Define a change in accounting principle and provide two examples.

2) Define a change in accounting estimate and provide two examples.

3) Define a change in reporting entity and provide an example.

4) What does it mean if a company uses the retrospective approach for an accounting change? What is involved in taking this approach?

5) What does it mean if a company uses the prospective approach for an accounting change? What is involved in taking this approach

6) When a company has a change in accounting principle, what approach (retrospective or prospective) does it use in accounting for the change?

7) What is the difference between a direct effect versus an indirect effect of a change in accounting principle? How is each handled (retrospective or prospective approach)?

8) What does it mean if an accounting principle change is "impracticable?" What are the conditions where this can occur?

Other Accounting Changes:

 

1) When a company has a change in accounting estimate, what approach (retrospective or prospective) does it use in accounting for the change?

2) What is a change in estimate effected by a change in accounting principle? What is an example of this? What approach (retrospective or prospective) is used for this change?

3) When a company has a change in reporting entity, what approach (retrospective or prospective) does it use in accounting for the change?