1. Change in principle reported retrospectively

2. Change in estimate

3. Change in principle reported prospectively

4. Change in reporting entity

5. Prior period adjustment required (Error correction)

1. Technological advance that renders worthless a patent with an unamortized cost of $45,000.

2. Change from LIFO inventory costing to average inventory costing.

3. Including in the consolidated financial statements a subsidiary acquired several years earlier that was appropriately not included in previous years.

4. Change from FIFO inventory method to LIFO.

5. Pension plan assets for a defined benefit pension plan achieving a rate of return in excess of the amount anticipated.

6. Change from the direct write-off method to the allowance method for recording bad debt expense. (Assume bad debts are material in this case and have always been material)

7. Change from declining balance depreciation to straight-line.

8. Change from determining lower of cost or market for inventories by the individual item approach to the aggregate approach.