Part 1:

1. If you are an importer of raw materials, what derivative contract will you entered into to mitigate the different risks?
2. How will you differentiate a change in accounting estimate from a change in accounting policy?
3. Briefly discuss the accounting for discontinued operations

Part 2 :

A - Change in accounting estimate B - Change in accounting policy

1.Change from completed contract to percentage of completion in determining revenue from contracts

2.Estimating the amount of bad debts

3. Change in warranty obligations

4. Change in ore production estimates of a copper mines

5. Change in inventory cost flow from average method to FIFO

Please explain part 1 clearly so that student can easily understand. This is intermediate accounting 3 subject.