During 20X4, the Company recognized revenue of $400,000 related to a single contract. The contract was for a service that was to be provided over a four year period starting on January 1, 20X5 and therefore should have been recognized ratably over four years beginning January 1, 20X5. The company is not preparing their 2005 financial statements

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?