3. Classifying Accounting Changes

Indicate as appropriate, the nature of each situation described below:

Type of Change

PR Change in Accounting Principle, reported retrospectively

PP Change in Accounting Principle, reported prospectively

E Change in Estimate

ES Change in Estimate resulting from a Change in Accounting Principle

R Change in Reporting Entity

F Correction of an Error

N Not an accounting change

______ Change from Sum of the Years Digits Depreciation method to Straight Line

______ Change in the estimated forfeiture rate under a stock option plan

______ Change from LIFO to FIFO inventory method

______ Change in reporting bad debt expense from the Direct Write Off method to the Allowance method

______ An inventory purchase that was in-transit at the end of the year was inadvertently excluded from the Inventory balance

______ Change in an accounting principle required by a new ASU, where the ASU requires prospective treatment

______ Change in the composition of a group of firms reporting on a consolidated basis

______ Changing reservations for dinner with the auditors from 6pm to 7pm

______ Change from the Completed Contract method to Percentage of Completion

______ Change in the discount rate used to calculate the Projected Benefit Obligation of a Defined Benefit Plan