5. Change in accounting estimates vs change in accounting methods Timing of revenue recognition: Old Method New Method 60% 100% Year of Sale (Contract signing) Subsequent year 40% 0% Assume: The firm had $4,000 of new contracts two years prior to the year of change. Contract volume increases by $200 each year. In yeart, new contract amounted to $4,400. 2 points 2 points 2 points 4.1 What is the reported revenue for year t-1 if the change is considered as a change in accounting methods? 4.2 What is the reported revenue for year t-1 if the change is considered as a change in accounting estimate? 4.3 What is the reported revenue for year t if the change is considered as a change in accounting estimate