Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Company XYZ is an SEC filer that has a fiscal year-end of December 31. XYZs Indian subsidiary (XYZ India) has historically closed its books on

Company XYZ is an SEC filer that has a fiscal year-end of December 31. XYZs Indian subsidiary (XYZ India) has historically closed its books on a one month lag (i.e., as of November 30) in order to meet the parent companys reporting deadline. The Company has consistently disclosed this information in the footnotes to its Form 10-K. During the second quarter of 20X9, XYZ India upgraded its systems and is able to complete its close process within a shorter period of time. Management is seeking to eliminate the one month lag because it is no longer needed to achieve timely consolidation. 1. Is this change allowed? If so, is it a Change in accounting principle Change in accounting estimate Correction of an error in previously issued financial statements, or Change in reporting entity 2. In what Period should this be recognized (retrospective, current and/or prospective) 3. Is financial statement disclosure required?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Art Of Auditing Uncovering Core Principles Of Audit Profession

Authors: Ignatius Ravi

1st Edition

B0CC7FFYP6, 979-8852090959

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago