All of the following statements are incorrect, except that

1. changes in accounting policy are always handled in the current or prospective period.

2. a change from expensing certain costs to capitalizing these costs due to a change in the period benefited, should be handled as a change in accounting estimate.

3. correction of an error related to a prior period should be considered as an adjustment to current year net income.

4. prior statements should be restated for changes in accounting estimates.