The following are various types of accounting changes: For each change or error, indicate how it would be accounted for assuming the company follows IFRS.

				Accounting Treatment
1.		Change in a plant assets residual value		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
2.		Change due to an overstatement of inventory (in the preceding period)		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
3.		Change from sum-of-the-years-digits to straight-line method of depreciation because of a change in the pattern of benefits received		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
4.		Change in a primary source of GAAP		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
5.		Decision by management to capitalize interest. The company is reporting a self-constructed asset for the first time.		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
6.		Change in the rate used to calculate warranty costs		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
7.		Change from an unacceptable accounting policy to an acceptable accounting policy		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
8.		Change in a patents amortization period		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
9.		Change from the zero-profit method to the percentage-of-completion method on construction contracts. This change was a result of experience with the project and improved ability to estimate the costs to completion and therefore the percentage complete.		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine
10.		Recognition of additional income tax owing from three years ago as a result of improper calculations by the accountant, who was not familiar with income tax legislation and income tax returns		select an Accounting Treatment Accounted for in the current year onlyAccounted for prospectivelyAccounted for retrospectivelyNone of the above, or unable to determine

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The following are various types of accounting changes: Identify the type of change for each of the situations.

				Type of change
1.		Change in a plant assets residual value		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
2.		Change due to an overstatement of inventory (in the preceding period)		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
3.		Change from sum-of-the-years-digits to straight-line method of depreciation because of a change in the pattern of benefits received		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
4.		Change in a primary source of GAAP		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
5.		Decision by management to capitalize interest. The company is reporting a self-constructed asset for the first time.		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
6.		Change in the rate used to calculate warranty costs		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
7.		Change from an unacceptable accounting policy to an acceptable accounting policy		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
8.		Change in a patents amortization period		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
9.		Change from the zero-profit method to the percentage-of-completion method on construction contracts. This change was a result of experience with the project and improved ability to estimate the costs to completion and therefore the percentage complete.		select a type of change Accounting error correctionChange in estimateChange in policyNot an accounting change
10.		Recognition of additional income tax owing from three years ago as a result of improper calculations by the accountant, who was not familiar with income tax legislation and income tax returns