43) A recruiter for an accounting firm decides to test your knowledge on accounting principles, respond with what should be done in the given situation.

Required:

A) A company changes depreciation methods. Briefly describe the steps the company should take to report this accounting change in its current comparative financial statements. Describe briefly the approaches of reporting changes in accounting principles.

B) Branch Industries changes from declining balance depreciation to straight-line depreciation for existing assets. Describe in detail the way Branch would account for the change and include reasons for the accounting.

C) Describe briefly the approaches of reporting changes in accounting principles.

D) How may accounting changes detract from accounting information? How are accounting errors treated?

E) We record and report most changes in accounting principle retrospectively, but sometimes report the changes prospectively. Explain when it is appropriate to report the changes prospectively. Provide examples.

F) Describe the way we account for a change in estimate. What is the appropriate accounting if we are unable to determine whether a change is a change in estimate or a change in principle?

G) What are the changes in accounting principle that require the prospective approach?